Suppose that there are three beachfront parcels of land available for sale in Asilomar and six people who would each like to purchase one parcel. Assume that the parcels are essentially identical and that the minimum selling price of each is $600,000. The table below reflects the willingness and ability of each of the six people to purchase a parcel.
Dakota $900,000
Mark $800,000
Lucy $700,000
Axelle $500,000
Kirby $370,000
Briana $300,000
Which of these people will buy one of the three beachfront parcels? Check all that apply.
__ Briana
__ Dakota
__ Kirby
__ Axelle
__ Mark
__ Lucy
Assume that the three beachfront parcels are sold to the people that you indicated above. Suppose that a few days after the last of those beachfront parcels is sold, another essentially identical beachfront parcel becomes available for sale at a minimum price of $525,000. This fourth parcel _______ be sold, as ________ will purchase it from the seller for at least the minimum price.
Dakota, Mark, Lucy.
will not, Axelle
jose
patty
shania
Based on the given willingness and ability to purchase, the people who will buy one of the three beachfront parcels are:
- Dakota ($900,000)
- Mark ($800,000)
- Lucy ($700,000)
- Axelle ($500,000)
- Kirby ($370,000)
Briana ($300,000) will not be able to purchase one of the three beachfront parcels.
Assuming the three beachfront parcels are sold to Dakota, Mark, and Lucy, the fourth parcel may or may not be sold, as it depends on whether any of the remaining potential buyers are willing to purchase it for at least the minimum price of $525,000.
To determine which individuals will buy one of the three beachfront parcels, we need to identify those whose willingness and ability to purchase a parcel is equal to or exceeds the minimum selling price of $600,000.
Based on the table:
- Briana is willing to pay $300,000, which is less than the minimum price, so she will not purchase a parcel.
- Dakota is willing to pay $900,000, which is more than the minimum price, so he will purchase a parcel.
- Kirby is willing to pay $370,000, which is less than the minimum price, so he will not purchase a parcel.
- Axelle is willing to pay $500,000, which is less than the minimum price, so he will not purchase a parcel.
- Mark is willing to pay $800,000, which is more than the minimum price, so he will purchase a parcel.
- Lucy is willing to pay $700,000, which is more than the minimum price, so she will purchase a parcel.
Therefore, the people who will buy one of the three beachfront parcels are:
- Dakota
- Mark
- Lucy
Now, let's analyze the fourth parcel that becomes available for sale at a minimum price of $525,000.
We need to check if any of the remaining people who did not purchase a parcel from the first round are willing to pay the minimum price of $525,000.
- Briana is willing to pay $300,000, which is less than the minimum price, so she will not purchase the fourth parcel.
- Kirby did not purchase a parcel, but his maximum willingness to pay is $370,000, which is less than the minimum price, so he will not purchase the fourth parcel.
- Axelle did not purchase a parcel, but his maximum willingness to pay is $500,000, which is less than the minimum price, so he will not purchase the fourth parcel.
Therefore, the fourth parcel will not be sold because no one is willing to purchase it from the seller for at least the minimum price of $525,000.