emand with zero transaction costs is Q of 1 sub D = 50 - P and supply is Q sub S = -7 + 2P.
Verify the prices and quantities calculated in the discussion.
Now assume intermediaries come from a competitive market with an equilibrium price of $8 per unit for their services, that is, any buyer or seller who wants intermediary's services must pay $8 for them. What is the maximum per unit that sellers are willing to pay intermediaries if hiring them saves buyers $8 in transaction costs.
Does your answer to Question 16a change if buyers pay $8 per unit to the intermediary but sellers offer to rebate part of the expense to the buyers?