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 $595,000. The following table states each person's willingness and ability to purchase a parcel. Willingness and Ability to Purchase Dollars
Bob 620,000
Cho 570,000
Eric 540,000
Ginny 530,000
Sean 750,000
Yvette 660,000
Which of these people will buy one of the three beachfront parcels?
a. Bob
b. Cho
c. Eric
d. Gianny
e. Sean
f. Yvette
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 is sold, another essentially identical beachfront parcels is sold, another essentially identical beachfront parcel becomes available for sale at a minimum price of $582,500. This fourth parcel be sold, because will purchase it from the seller for at least the minimum price.