Table 7-2

$$\begin{array} { | c | c | }
\hline \text { Buyer } & \begin{array} { c }
\text { Willingness to Pay } \
\text { (Dollars) }
\end{array} \
\hline \text { Carlos } & 20 \
\hline \text { Keira } & 24 \
\hline \text { Ava } & 28 \
\hline \text { Biyu } & 36 \
\hline
\end{array}$$
-Refer to Table 7-2. If there is only one unit of the good and if the buyers bid against each other for the right to purchase it, then the good will sell for
A)$20 or slightly less.
B)$24 or slightly more.
C)$28 or slightly more.
D)$36 or slightly less.

Question

Table 7-2
​
​
 $$\begin{array} { | c | c | } 
\hline \text { Buyer } & \begin{array} { c } 
\text { Willingness to Pay } \
\text { (Dollars) }
\end{array} \
\hline \text { Carlos } & 20 \
\hline \text { Keira } & 24 \
\hline \text { Ava } & 28 \
\hline \text { Biyu } & 36 \
\hline
\end{array}$$
-Refer to Table 7-2. If there is only one unit of the good and if the buyers bid against each other for the right to purchase it, then the good will sell for
A)$20 or slightly less.
B)$24 or slightly more.
C)$28 or slightly more.
D)$36 or slightly less.

Quizplus · Accepted Answer

The good will sell for $28 or slightly more because Ava, with the second-highest willingness to pay, will bid up to her maximum willingness to pay to outbid Keira, but not more than Biyu's willingness to pay.

Table 7-2 ​ ​ -Refer to Table 7-2

Table 7-2

-Refer to Table 7-2