1 June Wrench offered to sell estate to Hyde for 1200 dolars

1 June Wrench offered to sell estate to Hyde for 1200 dolars

2 June Hyde rejected the offer

6 June Wrench offered to sell for 1000 dolars

8 June Hyde relplied, offering 950 dolars

27 June Wrench rejected

28th June Hyde attempted to accept the 1000 dolars offer.

Did Wrench have to sell at 1000 dolars???

Solution

Wrench can increase the price further.Hyde has offered 1000 because he either likes the property a lot or maybe because he is not able to find another property. His demand is now inelastic.So wrench can raise the price further