ECO- The operator of a centralized market for electrical energy has received the bids

ECO- The operator of a centralized market for electrical energy has received the bids

Question
	
Problem 3.4 The operator of a centralized market for electrical energy has received the bids shown in the table below for the supply of electrical energy during a given period.
Company















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Amount (MWh)
Price ($/MWh)
red






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100
12.5
Red
100
14
Red
50
18
Blue
200
10.5
Blue
200
13
Blue
100
15
Green
50
13.5
Green
50
14.5
Green
50
15.5
a. Build the supply curve
b. Assume that this market operates unilaterally, that is, that the demand does not bid and is represented by a forecast. Calculate the market price, the quantity produced by each company and the revenue of each company for each of the following loads: 400 MW, 600 MW, 875 MW.
c. Suppose that instead of being treated as constant, the load is represented by its inverse demand curve, which is assumed to have the following form:
Where D is the demand, L is the forecasted load and (pie sign) is the price. Calculate the effect that this price sensitivity of demand has on the market price and the quantity traded.