Table 7-10
The only four consumers in a market have the following willingness to pay for a good:
Buyer Willingness to Pay

-Refer to Table 7-10. If there is only one unit of the good available for purchase, and if the buyers bid against each other for the right to purchase it, then the good will sell for
A) $12 or slightly less
B) $15 or slightly more
C) $19 or slightly more
D) $27 or slightly less

Question

Table 7-10
The only four consumers in a market have the following willingness to pay for a good:
Buyer Willingness to Pay
 
-Refer to Table 7-10. If there is only one unit of the good available for purchase, and if the buyers bid against each other for the right to purchase it, then the good will sell for
A) $12 or slightly less 
B) $15 or slightly more 
C) $19 or slightly more 
D) $27 or slightly less

Quizplus · Accepted Answer

The good will sell for $19 or slightly more because the highest bidder willing to pay for the single unit will determine the price, and $19 is the highest bid among the buyers.

Table 7-10 The Only Four Consumers in a Market Have the Following