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 $570,000. The following table states each person's willingness and ability to purchase a parcel.PersonWillingness and Ability to Purchase(Dollars)Ana630,000Charles590,000Dina550,000Gilberto510,000Juanita500,000Yakov700,000 Which of these people will buy one of the three beachfront parcels? Check all that apply.AnaCharlesDinaGilbertoJuanitaYakov 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 $560,000. This fourth parcel ____ (will, will not) be sold, because _____ (Dina, Juanita, Gilberto, no one) will purchase it from the seller for at least the minimum price. 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 $570,000. The following table states each person'swillingness and ability to purchase a parcel.PersonAnaCharlesDinaGilbertoJuanitaYakovAnaWhich of these people will buy one of the three beachfront parcels? Check all that apply.CharlesDinaWillingness and Ability to Purchase(Dollars)630,000590,000550,000GilbertoJuanitaYakov510,000500,000700,000Assume 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 ofthose beachfront parcels is sold, another essentially identical beachfront parcel becomes available for sale at a minimum price of $560,000. This fourthparcel✓ be sold, becausewill purchase it from the seller for at least the minimum price.

Answered: Suppose that there are three beachfront…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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 $570,000. The following table states each person's willingness and ability to purchase a parcel.

Person	Willingness and Ability to Purchase
(Dollars)
Ana	630,000
Charles	590,000
Dina	550,000
Gilberto	510,000
Juanita	500,000
Yakov	700,000

Which of these people will buy one of the three beachfront parcels? Check all that apply.

Ana

Charles

Dina

Gilberto

Juanita

Yakov

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 $560,000. This fourth parcel ____ (will, will not) be sold, because _____ (Dina, Juanita, Gilberto, no one) will purchase it from the seller for at least the minimum price.

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 $570,000. The following table states each person's
willingness and ability to purchase a parcel.
Person
Ana
Charles
Dina
Gilberto
Juanita
Yakov
Ana
Which of these people will buy one of the three beachfront parcels? Check all that apply.
Charles
Dina
Willingness and Ability to Purchase
(Dollars)
630,000
590,000
550,000
Gilberto
Juanita
Yakov
510,000
500,000
700,000
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 $560,000. This fourth
parcel
✓ be sold, because
will purchase it from the seller for at least the minimum price.

Expert Solution

Step 1

The willingness to pay for a consumer refers to the maximum amount the consumer is ready to pay for a good or service. The consumer will purchase the good or service only when the willingness to pay for the consumer is more than that of the price of the good or service. In the given scenario, the price of the commodity is $570,000. The willingness to pay for every individual is:

Person	Willingness and Ability to Purchase
Ana	630,000
Charles	590,000
Dina	550,000
Gilberto	510,000
Juanita	500,000
Yakov	700,000

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