Suppose a government wishes to auction 5 million bonds,and three would-be buyers submit the following bids: $$\begin{array} { l c l }
& \text { Price } & \text { Quantity } \
\text { Buyer A } & \$ 1,015 & 2 \text { million } \
\text { Buyer B } & \$ 1,000 & 3 \text { million } \
\text { Buyer C } & \$ 990 & 1 \text { million }
\end{array}$$
In a uniform-price auction:

Question

Suppose a government wishes to auction 5 million bonds,and three would-be buyers submit the following bids: $$\begin{array} { l c l } 
& \text { Price } & \text { Quantity } \
\text { Buyer A } & \$ 1,015 & 2 \text { million } \
\text { Buyer B } & \$ 1,000 & 3 \text { million } \
\text { Buyer C } & \$ 990 & 1 \text { million }
\end{array}$$
In a uniform-price auction:

Quizplus · Accepted Answer

In a uniform-price auction, all winning bidders pay the same price, which is the highest price that allows the entire quantity to be sold. Here, Buyer A and Buyer B win, and they both pay $1,000, the price of the last accepted bid.

Suppose a Government Wishes to Auction 5 Million Bonds,and Three