16. How prices allocate resources 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 $335,000. The following table states each person’s willingness and ability to purchase a parcel. Person Andrew Beth Willingness and Ability to Purchase (Dollars) 290,000 270,000 500,000 420,000 360,000 310,000 Lorenzo Neha Sam Teresa

Which of these people will buy one of the three beachfront parcels? Check all that apply. Andrew Beth O Lorenzo Neha Sam Teresa will Assum will not those three beachfront parcels are sold to the people that you indicated in the previous section. Suppose that a few days after the last of parcels is sold, another essentially identical beachfront parcel becomes available for sale at a minimum price of $300,000. This fourth be sold, because will purchase it from the seller for at least the minimum price. parcel

Beth O Sam Teresa no one Teresa Andrew ssume that the three beachfront par hose beachfront parcels is sold, anot be sold, because d to the people that you indicated in the previous section. Suppose that a few days after the last of Jally identical beachfront parcel becomes available for sale at a minimum price of $300,000. This fourth will purchase it from the seller for at least the minimum price. arcel