Question

Assume that the three beachfront parcels are sold to the people that you indicated in the previous section. 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 $732,500. This fourth parcel __1__ be sold because __2__ will purchase it from the seller for at least the minimum price.1) A. WillB. Will not2) A. No oneB. Ravi ($690,000)C. Maria ($720,000)D. Simone ($680,000)

Answer 1

Answer:

1) B. Will not

2) A. No one.

Explanation:

Maria with $ 720000 is the next buyer with willingness and ability to buy, however, her offered price is less than the minimum selling price, which is $732500 for the parcel. Therefore, no one will buy the parcel at the given minimum selling price. Seller need to lower his minimum selling price to find buyer for parcel.