How prices allocate resourcesSuppose that there are three beachfront parcels of land available for sale in Astoria 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.PersonWillingness and Ability to Purchase(Dollars)Andrew900,000Beth810,000Darnell770,000Eleanor720,000Jacques690,000Kyoko680,000 Which of these people will buy one of the three beachfront parcels? Check all that apply.Andrew Beth Darnell Eleanor Jacques Kyoko 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 $732,500. This fourth parcel be sold, because will purchase it from the seller for at least the minimum price.

Demand for a commodity is the desire backed by the ability and willingness of the consumers to buy…

Answered: How prices allocate resources Suppose…

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter3: Preferences And Utility

Section: Chapter Questions

Problem 3.9P

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How prices allocate resources

Suppose that there are three beachfront parcels of land available for sale in Astoria 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	Willingness and Ability to Purchase
(Dollars)
Andrew	900,000
Beth	810,000
Darnell	770,000
Eleanor	720,000
Jacques	690,000
Kyoko	680,000

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

Andrew

Beth

Darnell

Eleanor

Jacques

Kyoko

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 $732,500. This fourth parcel be sold, because will purchase it from the seller for at least the minimum price.

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