13. How prices allocate resources Aa Aa Suppose that there are three beachfront

Question

13. How prices allocate resources Aa Aa Suppose that there are three beachfront parcels of land available for sale in Asilomar 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 $600,000. The following table reflects the willingness and ability of each of the six people to purchase a parcel Dakota Mark Lucy Axelle Kirby Briana $900,000 $800,000 $700,000 $500,000 $370,000 $300,000 Which of these people will buy one of the three beachfront parcels? Check all that apply Briana Axelle [ ] Dakota Kirby Mark Lucy Assume that the three beachfront parcels are sold to the people you previously indicated. 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 $525,000. This fourth parcel from the seller for at least the minimum price be sold, as will purchase it

Explanation / Answer

Dacota, Mark and Lucy- all 3 will purchase the beachfront parcel.

When price=525000, the forth parcel will not be sold as willingness to pay is less and no one will purchase it from the seller for atleast the minimum price.

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