Suppose that there are three beachfront parcels of land available for sale in Hu

Question

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 $400,000. The following table states each person's willingness and ability to purchase a parcel Jacques Kyoko Musashi Rina Sean Yvette Willingness and Ability to Purchase (Dollars) 550,000 480,000 420,000 380,000 340,000 330,000 Which of these people will buy one of the three beachfront parcels? Check all that apply Jacques Kyoko Musashi Rina Sean Yvette

Explanation / Answer

The minimum selling price is of each beachfron parcel of land $400,000.

People who have a higher willingness to pay will purchase the land. Jacques, Kyoko, Musashi have a higher willingness to pay. These three will purchase the land.

If the minimum price for an identical beachfront parcel is $360,000. The fourth beachfront parcel will be sold to Rina since she has a higher willingness to pay.

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