Question

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 $575,000. The following table states each person's willingness and ability to purchase a parcel. 

           Willingness and Ability to Purchase

                      (Dollars)

   Alyssa              660,000

   Brian               600,000

   Crystal             550,000

   Edison              520,000

   Hilary              510,000

   Tim                 750,000

Which of these people will buy one of the three beachfront parcels? Check all that apply.

• Alyssa

• Brian

• Crystal

• Edison

• Hilary

• Tim

Assume that the three beachfront parcels are sold to the people that you indicated in the previous section. Suppose that a few days after the last of those beachfront parcels is sold, another essentially identical beachfront parcel becomes available for sale at a minimum price of $535,000. This fourth parcel a)will b)will not   be sold, because a)edison b)hilary c)no one d)crystal will purchase it from the seller for at least the minimum price

Answer 1