Name:
ECON 10: Experiment 1 Writeup (75 points)
Write your answers to the questions below in this Word document. Using red text will make it
easier for us to see your answers. Responses of a few words (when asking for numbers) or a few
sentences (when asking open-ended questions) are sufficient for full credit.
For questions that ask for graphs, draw each one by hand on a piece of paper, take a picture that
we can easily read (i.e., good lighting, not blurry), and paste the image into your response. Let
Prof. Denton-Schneider know if you have issues with getting the pictures into this document.
To turn in your assignment, save this document as a PDF (see here for help) and submit it to
Canvas. Only PDFs will be accepted, as Canvas’s grading mode messes with the formatting of Word
documents.
You will need Microsoft Excel for this assignment, which is available to all Clark students for free.
Help with Excel:
• How to calculate an average.
• How to calculate a standard deviation.
Instructions: Download the “Experiment 1 data_Revised.xlsx” file from Canvas (under “Files” in
the “Experiment 1” folder). It has 6 sheets: sellers’ costs, buyers’ values, and the agreed-upon
prices in 2 of the rounds we did across Tuesday and Thursday (henceforth “Round 1” and “Round
2”). The values in each sheet have been sorted from least to greatest.
Q1 (5 points): In Round 1, what was a Buyer’s average value and what was a Seller’s average cost?
What are these figures for Round 2? (Round each answer to the nearest decimal point.)
Q2 (5 points): Take note of the average values and costs within each round. In your opinion, what
would be a fair price for one unit of the good in Round 1? And in Round 2? (This question is about
your philosophical beliefs – there is no right or wrong answer, just explain your thinking.)
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Q3 (10 points): For Round 1, use sellers’ costs to complete the supply schedule and buyers’ values
to complete the demand schedule below. (Recall that each person can only consume 1 unit of the
good and buyers / sellers would rather not purchase / not sell anything than buy / purchase a
good for exactly their value / cost.)
Supply schedule: Round 1
Range of prices Quantity supplied (QS)
P ≤ $20
$21 ≤ P ≤ $30
$31 ≤ P ≤ $40
$41 ≤ P ≤ $50
P ≥ $51
Demand schedule: Round 1
Range of prices Quantity demanded (QD)
P ≤ $29
$30 ≤ P ≤ $39
$40 ≤ P ≤ $49
$50 ≤ P ≤ $59
P ≥ $60
Q4 (10 points): For Round 1, draw a graph with the market supply and demand curves on the
same graph and include the image below. Make sure to label each curve as “S” and “D”. (Each
curve should consist of connected vertical and horizontal lines that obey the laws of supply and
demand.)
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Q5 (10 points): For Round 2, use sellers’ costs to complete the supply schedule and buyers’ values
to complete the demand schedule below.
Supply schedule: Round 2
Range of prices Quantity supplied (QS)
P ≤ $30
$31 ≤ P ≤ $40
$41 ≤ P ≤ $50
$51 ≤ P ≤ $60
P ≥ $61
Demand schedule: Round 2
Range of prices Quantity demanded (QD)
P ≤ $19
$20 ≤ P ≤ $29
$30 ≤ P ≤ $39
$40 ≤ P ≤ $49
P ≥ $50
Q6 (10 points): For Round 2, draw a graph with the market supply and demand curves on the
same graph and include the image below. Label the curves.
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Q7 (5 points, corrected text): Given your graph, what should the Round 1 equilibrium price be?
What should the Round 1 range of equilibrium quantities be? (Assume that if the curves are $1
away from each other, they overlap.) And what are they in Round 2? Include new pictures of each
graph indicating what the equilibrium prices should be and shading what the ranges of
equilibrium quantities should be.
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Q8 (5 points, corrected text): How do the ranges of equilibrium quantities in your graphs compare
to the observed equilibrium quantity sold in Round 1 (i.e., the number of agreed-upon prices)?
And in Round 2?
Q9 (5 points, corrected text): In Round 1, what was the observed average price? And what was it
in Round 2? How close are these observed equilibrium prices to what you said would be the fair
outcomes in Q2?
Q10 (10 points): For context, Round 1 was conducted on Tuesday (9/12) and Round 2 was
conducted on Thursday (9/14), and the standard deviation is a measure of how dispersed the
data are relative to the average (i.e., a higher standard deviation means the data are more spread
out). In Round 1, what was the standard deviation of the prices? And what was it in Round 2? In
which round was the standard deviation of prices lower, and why do you think it was the case?
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