Chuck offers $122,000 for a house.The seller turns down the offer but says she will sell the house for $129,000.However,Chuck refuses to pay the higher price.If both Chuck and the seller are rational,then marginal analysis implies that the marginal benefit to the house to
A) Chuck must be less than $129,000.
B) Chuck must be greater than $129,000.
C) Chuck must be greater than $122,000.
D) the seller must be less than $129,000.
E) the seller must be less than $122,000.

Question

Quizplus · Accepted Answer

Marginal analysis implies that the marginal benefit to the house to Chuck must be less than $129,000, because he is unwilling to pay more than $122,000 for it.

Chuck Offers $122,000 for a House