In: Economics
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