Question

Q Search th Homework (Ch 04) 16. How prices allocate resources Suppose that there are three beachfront parcels of land available for sale in Huntington and six people who would each like to purchase one parcel. Assume that the parcels are essentially identical and that the minimum selling price of each is $745,000. The following table states each person's willingness and ability to purchase a parcel. Person Eric Ginny Willingness and Ability to Purchase (Dollars) 900,000 810,000 770,000 720,000 690,000 680,000 Kenji Lucia Paolo Sharon Which of these people will buy one of the three beachfront parcels? Check all that apply. Eric Ginny ken Lucia Paolo Sharon

Answer 1

PartA:-

Eric, Ginny, and Kenji will buy parcels because their willingness and ability to pay is greater than the Minimum selling price i.e. 745,000.

PartB:-

Once three parcels are sold, the remaining persons are willing to pay a maximum amount of 720000 ,690000 , 680000 only.

So, if fourth parcel is available for a Minimum selling price of 732,500 ,then

This fourth parcel will not be sold,because no one will purchase it from the seller.

Note for partB:- you have not provided drop down option , so I have assumed it as " no one"

Incase you doesn't find "no one " option in drop down menu...plz provide drop down in comment section ...I'll sure answer it.

Ask me if u have doubt!

Hope this helps you, Thank you! ?