Question

Table 7.7 Buyer Willingness to Pay Michael $500 Earvin $400 Larry $350 Charles $300 Refer to Table 7.7. You have two essentially identical extra tickets 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 two tickets. Who makes the winning bids, and what do they offer to pay for the tickets? a. Michael and Earvin; more than $350 but less than or equal to $400 b. Michael and Earvin; more than $400 but less than or equal to $500 O carvin and Larry; more than $300 but less than or equal to $350 d. Larry and Charles; less than $300

Answer 1

ANSWER:

The correct answer is option a that is michael and earvin ; more than $350 but less then or equal to $400.

(both michael and earvin will make the offer of more then $350 as larry and charles willingness to pay is not higher then $350 and since earvin willingness to pay is $400 , therefore the winning bid will be between $350 and $400.)