Table 7-6

-Refer to Table 7-6.You have an extra ticket to the Midwest Regional Sweet 16 game in the men's NCAA basketball tournament.The table shows the willingness to pay of the four potential buyers in the market for a ticket to the game.You hold an auction to sell the ticket.Who makes the winning bid,and what does he offer to pay for the ticket?
A) Michael; $501
B) Michael; more than $400 but less than or equal to $500
C) Earvin; $400
D) Earvin; more than $350 but less than or equal to $400

Question

Table 7-6
 
-Refer to Table 7-6.You have an extra ticket to the Midwest Regional Sweet 16 game in the men's NCAA basketball tournament.The table shows the willingness to pay of the four potential buyers in the market for a ticket to the game.You hold an auction to sell the ticket.Who makes the winning bid,and what does he offer to pay for the ticket?
A) Michael; $501 
B) Michael; more than $400 but less than or equal to $500 
C) Earvin; $400 
D) Earvin; more than $350 but less than or equal to $400

Quizplus · Accepted Answer

According to the table, Michael is willing to pay the highest amount ($501). However, the question asks for the winning bid, which means the bid can be lower than the maximum willingness to pay. The only option in the table that fits this condition is Michael offering more than $400 but less than or equal to $500, which is option B.

Table 7-6 -Refer to Table 7-6.You Have an Extra Ticket to the Extra