Suppose we have a set of three buyers who are trying to buy homes from three sellers. Suppose that seller A charges 3 for their house, seller B charges 2 for their house, and seller C charges 1 for their house The valuations for the three buyers are as follows ordered by house number (so house a, then house b, then house c):
Buyer 1: A: 1 B: 3 C: 2
Buyer 2: A: 5 B:5 C: 5
Buyer 3: A: 5 B: 3 C: 2
Assuming that this set of prices is market clearing, provide the utility for each player in the transaction.

Answers

Answer 1

Solution :

As we can see from the following question that  :

[tex]$\text{Seller A}$[/tex] charges [tex]$3$[/tex] for their house, [tex]$C_A=3$[/tex]

[tex]$\text{Seller B}$[/tex] charges [tex]$2$[/tex] for their house, [tex]$C_B=2$[/tex]

[tex]$\text{Seller C}$[/tex] charges [tex]$1$[/tex] for their house, [tex]$C_C=1$[/tex]

Now depending on the valuation that each buyer have on these three houses, they derive utility from it :

Buyer I

Valuation for house A, [tex]$V'_A=1$[/tex]

Valuation for house B, [tex]$V'_B=3$[/tex]

Valuation for house C, [tex]$V'_C=2$[/tex]

Utility that buyer I derives from :

House A, [tex]$V_A = V'_A-C_A = 1-3 = -2$[/tex]

House B, [tex]$V_B = V'_B-C_B = 3-2 = 1$[/tex]

House C, [tex]$V_C = V'_C-C_C = 2-1 = 1$[/tex]

As we can see from buying house B and C, buyer I has positively utility, so the buyer will be interested to buy house B and C. As the utility derived from both the houses is same, he will be indifferent.

Buyer II

Valuation for house A, [tex]$V^2_A=5$[/tex]

Valuation for house B, [tex]$V^2_B=5$[/tex]

Valuation for house C, [tex]$V^2_C=5$[/tex]

Utility that buyer II derives from :

House A, [tex]$V_A = V^2_A-C_A = 5-3 = 2$[/tex]

House B, [tex]$V_B = V^2_B-C_B = 5-2 = 3$[/tex]

House C, [tex]$V_C = V^2_C-C_C = 5-1 = 4$[/tex]

Buyer II drives positive utility from all the three houses, so he will be interested to buy any of them but will be inclined towards house C, as it gives the buyer more utility.

Buyer III

Valuation for house A, [tex]$V^2_A=5$[/tex]

Valuation for house B, [tex]$V^2_B=3$[/tex]

Valuation for house C, [tex]$V^2_C=2$[/tex]

Utility that buyer III derives from :

House A, [tex]$V_A = V^2_A-C_A = 5-3 = 2$[/tex]

House B, [tex]$V_B = V^2_B-C_B = 3-2 = 1$[/tex]

House C, [tex]$V_C = V^2_C-C_C = 2-1 = 1$[/tex]

The buyer III derives positive utility from all the three houses but will be more inclined to buy house A as it gives the buyer higher utility as compared to the other houses.


Related Questions

1. Write an equation of the line in slope-intercept form that passes through (4.2) and (8.–2).

Answers

Answer:

its (8+4)/(-2-2) so the slope is -3x

Step-by-step explanation:

Help me with Perpendicular angles

Answers

Answer:

x = 50°

x = 70°

Step-by-step explanation:

A right angle is indicated by a small box.

The angles shown are right angles = 90° each. Therefore:

✔️x + 40° = 90°

Subtract 40° from each side

x = 90° - 40°

x = 50°

✔️x + 20° = 90°

Subtract 20° from each side

x = 90° - 20°

x = 70°

Robert must read a few books from his home library. He read any 4 out of 6 books from the top shelf, and then any 2 out of 3 books from the middle shelf and then any 3 out of 6 books from the bottom shelf. In how many ways can Robert read the books, if different orders in which the books will be read count as different ways

Answers

Answer:

Robert can read the books in 129,600 different ways.

Step-by-step explanation:

The order in which the book are read is important, which means that the permutations formula is used to solve this question.

Permutations formula:

The number of possible permutations of x elements from a set of n elements is given by the following formula:

[tex]P_{(n,x)} = \frac{n!}{(n-x)!}[/tex]

Top shelf:

4 books from a set of 6. So

[tex]P_{(6,4)} = \frac{6!}{2!} = 360[/tex]

Middle shelf:

2 books from a set of 3. So

[tex]P_{(3,2)} = \frac{3!}{2!} = 3[/tex]

Bottom shelf:

3 books from a set of 6. So

[tex]P_{(6,3)} = \frac{6!}{3!} = 120[/tex]

Total:

360*3*120 = 129,600

Robert can read the books in 129,600 different ways.

A spinner is made of three equal sections blue green and red if I spend spend 180 times how many times I expect to get red as outcome

Answers

60 times

You have a 1/3 chance each spin.

1/3 = x/180
180 = 3x
x = 60

Write the hourly wage 15 dollars an hour as a fraction

Answers

it can be written like this, hope this helps: $15/hour <3

The hourly wage 15 dollars an hour as a fraction is $15/1hr.

What is a fraction?

A fraction represents a part of a number or any number of equal parts.

There is a fraction, containing numerator(upper value) and denominator(lower value).

When the numerator is less than the denominator, the fraction is called proper fraction, otherwise it is called improper fraction.

A proper fraction is also called fraction which is less than 1.

And an improper fraction is ≥ 1

A mixed fraction contains a sum of whole number and a proper fraction.

Given;

wage of 1hour = $15

In fraction;

15dollars/1hour

Therefore, the answer in fraction will be 15/1

Learn more about fraction;

https://brainly.com/question/729654?referrer=searchResults

#SPJ2

Look at picture and find the value of x please help no links!!

Answers

The best answer to go with is c

A pair of dice was rolled many times
and the results appear below. Based
upon these results, what is the
experimental probability of rolling a 2?
Outcome
2
3
3
4
5
6
7
8
9
10
11
12
Frequency
3
6
00
11
14
16
15 12
9
5
1
The percent probability is = [ ? ]%
Round to the nearest percent.
Enter

Answers

I think that would be 16

Evaluate 5x when x =8

Answers

Answer:

5x

= 5(8)

= 40

I hope I've helped

Suppose that you are about to purchase a car and have narrowed your choices to two models --Model A and Model B. All things are about equal, such as price, options, even the average annual maintenance costs. You find an owner survey in an auto magazine that indicates that the standard deviation of maintenance costs is smaller for Model B. Based on this information, which of the following statements is most appropriate?
A. Model B with the smaller standard deviation is preferable, because the smaller value implies that the mean is a more reliable representation of maintenance costs.
B. Model A with the larger standard deviation is preferable. Cecause the larger value implies a smaller amount of variation in the data
C. Neither of the models are good since both standard deviations are not equal to 0. B 2
D. They are equally acceptable, because standard deviations are not useful for comparisons of data sets.
E. Cannot determine based on the information provided.

Answers

Answer:

A. Model B with the smaller standard deviation is preferable, because the smaller value implies that the mean is a more reliable representation of maintenance costs.

Step-by-step explanation:

The standard deviation is a measure of the variability of a dataset about a mean value. Larger values of standard deviation implies that the values varies Hugely about the mean whole smaller variability measure values mean that the data only varies a little about the mean. The implication of having a large variability value is that, low and high values in the data can be very different from the mean values, hence, lowering the reliability of Mean value. The lesser varibality gives the mean more reliability as a measure of centre

write the number that is 100 times greater than 1.86

Answers

Answer: 186
Solution: 100 x 1.86

Explain why the data display is misleading and how it affects your perception of this data

PLZ HELP ILL GIVE BRAINLISEST IM DEPRTATE NDNAJD

Answers

Because for every items sold the difference is 1 and for 3-6 which has the most sold the difference is 3

convert (-2,2) into equivalent polar coordinates

Answers

(2rad2, 135) is the polar equivalent


HELP

What is the equation of the trend line in the scatter plot ?

Answers

Yo bro I need food give six seven

Find the volume of the following cylinder in cubic inches

Answers

Answer:

Option (1)

Step-by-step explanation:

Volume of a cylinder is given by the formula,

V = πr²h

Here, V = Volume

r = Radius of the circular base

h = Height of the cylinder

From the picture attached,

r = 8 in.

h = 0.5 in.

By substituting these values in the formula,

V = π(8)²(0.5)

  = 32π

  = 32(3.14)

  = 100.48 in³

Therefore, Option (1) will be the correct option.

According to the graph, the __________________ is 57-43.

Answers

Answer:

Range

Step-by-step explanation:

The range is the max value minus the min value

A. 1/3
B. 1
C. 2
D. 3/1
E. 1/2
F. 2/3

Answers

Answer:

B

Step-by-step explanation:

the graph is completely proportional so the answer would be 1

7
Identify the vertex, axis of symmetry,
and y-intercept.
f(x) = -1 (x + 4)2 – 5
Vertex:
Axis of symmetry:
y-intercept:

Answers

No Vertex : 3
Axis of symmetry :1
Y-intercept : (0,13)

What is the decimal equivalent of 2/3?

Answers

Answer:

0.66

Step-by-step explanation:

Answer:

i think 0.6

Step-by-step explanation:

i thank hope it helps

Which expression is equivalent to7sqrt x^2/ 5 sqrt y^3
?Assume y/=0,

Answers

Answer:

7sq rt = 2.6457513110645907 = sqrt y^3

Step-by-step explanation:

can someone help me please please?

Answers

Answer:

22

Step-by-step explanation:

Count the dot

There is a lighthouse on top of a cliff. The light of the lighthouse is 200 feet above sea level. It can be seen on the deck of a ship that is 25 feet above sea level. If the angle of depression from the light of the lighthouse to the deck of the ship is 30 degrees, then how far from the cliff is the ship, to the nearest foot?

Answers

Answer:

Step-by-step explanation:

It is C

Answer: C- 303

Step-by-step explanation:

Jaylin Earned $36 for 3 hours of work and $60 for 5 hours of work. What is the Constant of Proportionality?

Answers

I believe it would be 12$ per hour or aka constant proportionality!! I hope I get brain-list!!
Explanation
36 divide by 3 = 12
60 divide by 5 = 12
So twelve is your answer

P varies inversely with the square of Q. When Q is 8, P 9. Find the value of P when Q is 3.

Answers

Answer:

P

[tex] \alpha [/tex]

1/q²

P=k/Q²

K=P×Q²

Where P=9

Q=8

K=?

K=9×8²

K=9×64

K=573

So where K= 573

Q=3

P=?

P=K/Q²

P=573/3²

P=573/9

P=63.67

Pls help me pls pls I am soo bad at math

Answers

Answer:

Length = 40

Height = 20

Step-by-step explanation:

If you multiply 40 x 20, it equals 800

20 is also half of 40 as well.

One card is drawn from a regular deck of 52 cards. Find P (a red jack). Express your answer as a fraction and a percent, rounded to the nearest tenth of a percent.

Answers

Answer:

GIME SUM SKITTLES (Points)

Step-by-step explanation:

Answer:

Step-by-step explanation:

??.

help please help please ​

Answers

Wouldn’t that be 2/3?! I may be wrong if so sorry

kevin scored 11 points in his last basketball game. if kevin made two more free throws (one point each) then two-point shots, how many of each shot did he make? choose the graph that best depicts this problem.

Answers

Answer:

Kevin made 5 free throws and 3 two-point shots.

Step-by-step explanation:

Given that Kevin scored 11 points in his last basketball game, to determine if Kevin made two more free throws (one point each) than two-point shots how many of each shot did he make, the following calculation must be performed:

11 x 1 + 0 x 2 = 11

6 x 1 + 4 x 2 = 14

5 x 1 + 3 x 2 = 11

Therefore, Kevin made 5 free throws and 3 two-point shots.

Answer:

Step-by-step explanation:

Graph

Find the area of the composite figure.
A. 65.1 sq in
B. 90.3 sq in
C. 106.3 sq in
D. 241.1 sq in

Answers

Answer:

I think B but not so sure

Hoping you have a good day

Answer:

Step-by-step explanation:

radius of semi circle=8/2=4 in

height of triangle=14-4=10 in.

area of composite figure=1/2×8×10+π×4²=40+16 π≈90.3 sq. in

Which inequalities have the solution set graphed on the number line? Select two options. A number line going from negative 6 to positive 2. An open circle is at negative 4. Everything to the left of the line is shaded. x less-than negative 4 Negative 4 less-than x Negative 4 less-than-or-equal-to x Negative 4 greater-than x x greater-than negative 4

Answers

Answer:

[tex]x < -4[/tex]

[tex]-4 > x[/tex]

Step-by-step explanation:

Given

Description of number line

Range: -6 to 2

Open circle on -4

Left shaded

Required

Select the number line

From the question, we understand that the left side of the number line is shaded.

This means that the inequality is [tex]\le[/tex] or [tex]<[/tex]

Also, the open circle on -4 means that we discard [tex]\le[/tex].

So, the inequality is:

[tex]x < -4[/tex]

The opposite of the above inequality is:

[tex]-4 > x[/tex]

Answer:

A, D.  

Step-by-step explanation:

good luck with edge :)

Is it possible for a triangle to have a 54 degree angle and a 126 degree angle? Explain why or why not.

Answers

Answer:

No

Step-by-step explanation:

Those are only 2 angles and they already equal 180, Every single triangle has a sum of 180 and if you already hit 180 with only 2 out of the 3 points, it's not possible

Answer:

No

Step-by-step explanation:

No, because the 3 angles of a triangle have to add up to 180 degrees. The given 2 angles already add up to 180 degrees leaving no room for the missing angle.    

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