1 2 16 How prices allocate resources Suppose that there are

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16. 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 $505,000. The following table states each person\'s willingness and ability to purchase a parcel Andrew Beth Lorenzo Neha Sam Teresa Willingness and Ability to Purchase (Dollars) 460,000 430,000 600,000 550,000 520,000 490,000 Which of these people will buy one of the three beachfront parcels? Check all that apply Andrew Beth Lorenzo Neha Sam Teresa 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 $497,500. This fourth parcel be sold, because will purchase it from the seller for at least the minimum price

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The three individuals who will buy will be Lorenzo, Neha and Sam because their willingness to pay is more than the minimum selling price.

The fourth parcel will not be sold because no one has the maximum willingness to pay.

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