Question

How prices allocate resources

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Suppose that there are three plots of mountain resort land available for sale in Breckenridge and six potential buyers, each interested in purchasing one plot. Assume that all of the plots are basically indistinguishable and that the minimum selling price of each is $445,000. The following table lists each potential buyer's willingness and ability to purchase a plot of land. Willingness and Ability to Purchase
Dollars)
600,000
510,000
470,000
420.000
390,000
380,000
Which of these people will purchase one of the three mountain resort plots? Check all that apply.
• Edison
• Hilary
D Kevin
• Maria
• Rajiv
• simone

Answer 1

Edison, Hilary, and Kevin

Explanation:

To determine which of the potential buyers will purchase one of the three mountain resort plots, we need to compare their willingness and ability to purchase with the minimum selling price of $445,000. Let's analyze each buyer:

Edison: Willingness to purchase - $600,000. Since this exceeds the minimum selling price, Edison can purchase a plot.

Hilary: Willingness to purchase - $510,000. Since this exceeds the minimum selling price, Hilary can purchase a plot.

Kevin: Willingness to purchase - $470,000. Since this exceeds the minimum selling price, Kevin can purchase a plot.

Maria: Willingness to purchase - $420,000. Since this does not exceed the minimum selling price, Maria cannot purchase a plot.

Rajiv: Willingness to purchase - $390,000. Since this does not exceed the minimum selling price, Rajiv cannot purchase a plot.

Simone: Willingness to purchase - $380,000. Since this does not exceed the minimum selling price, Simone cannot purchase a plot.

Based on the given information, the potential buyers who can purchase one of the three mountain resort plots are:

Edison

Hilary

Kevin

Therefore, the correct answers are Edison, Hilary, and Kevin.

Hope this helps!