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

What is the perimeter of this shape? Use numbers only. *

Answers

Answer:

13

Step-by-step explanation:

The perimeter is all of the sides added together. Because this is a rectangle, the length and width are the same on both sides. They gave you the length and width, so just add them:

4 + 4 + 2.5 + 2.5 = 13.

So the perimeter of the shape is 13.

Answer:

13 m

Step-by-step explanation:

2.5 + 4 + 2.5 + 4

2.5 + 2.5 + 8

5 + 8

13

why is coal a non-renewable energy source​

Answers

1. It is extracted from the ground.
2. It took years to form.

Find the coordinates of point B on AC such that AC is 6 times long as AB.

Answers

Answer:

I think it's 36 I'm not sure because you did give me more to go off of to help you sorry if it's wrong

40% is NOT equivalent to....?
A. 0.4
B.2/5
C.40/100
D. 0.04
E. None correct

Answers

Answer:

d

Step-by-step explanation:

d is .04 percent plz mark branliest

The hotel room tax in Festivity City is calculated using the function
7(x) = 0.06x + 4.5
where x is the cost in dollars of the room and 7(x) is the tax in dollars.
What is the tax on a room that costs $120?
HELP ASAP ILL GIVE U BEST ANWER THING

Answers

Answer: 11.70

Step-by-step explanation:

please help me i dont understand thank you!!

Answers

Answer:

32 units squared

Step-by-step explanation:

Split up the figure into easy to find area parts. So, theres 2 triangles, and in the middle of those, you can make a square. And that would make the top part a large triangle! Now find the area of these

Large triangle: 1/2 (4)(10) = 20

Smallest triangle: 1/2(2)(2) = 2

Medium triangle: 1/2(6)(2) = 6

Square: 2*2 = 4

Now add them all up! 20+2+6+4 = 32 units squared!

NO LINKS OR ELSE YOU'LL BE REPORTED!Only answer if you're very good at math.

Calculate the slope of the lines using the rise/run formula.​

Answers

Answer:

1. 3/4 2. -1/3

Step-by-step explanation:

#1:

Given rise/run, the rise is 3, and the run, is 4, so... 3/4

#2:

Given rise/run, the rise is 2, and the run is 6, so... you get 2/6 = 1/3. However, don't forget that the slope is negative, so it'll be -1/3.

Answer:

3. 3/4

4. -1/3

Step-by-step explanation:

Since the rise and run formula is slope = (y1-y2)/(x1-x2),

3. (2 - (-1) ) / (2- (-2) ) = 3/4

4. (-1- (-3) ) / (-2 - (-4) ) = -2/6 = -1/3

can someone help me really please​

Answers

Answer:

bro I don't know seach on chome

Don invested $ 5 000 in an account paying 5% simple interest per year for 7 years.

Answers

Answer:

FV= $6,750

Step-by-step explanation:

Giving the following information:

Initial investment (P)= $5,000

Interest rate (r)= 5% simple interest

Number of periods (t)= 7 years

To calculate the future value of the investment, we need to use the following formula:

FV= (P*r*t) + P

FV= (5,000*0.05*7) + 5,000

FV= 1,750 + 5,000

FV= $6,750

Which statements are true?
Select each correct answer.
A. All triangles have 3 straight sides.
B. Only some triangles are polygons.
C. All triangles are plane figures.
D. All triangles have 3 angles.
E. All triangles have one right angle.

Answers

Answer:

C. c. c.c.c.cc.c.c.

Step-by-step explanation:

Answer Choices:
A. 0.26
B. 0.56
C. 0.52
D. 0.31

If you answer back with a link your comment will be reported.

Answers

The best answer to go with is b

Solve the equation 8-2x=-8x+14

Answers

Answer:

x= -3/5

Step-by-step explanation:

Help pls!Pls and ty!

Answers

Answer:

a

Step-by-step explanation:

Find an equation for the inverse of each of the following relations. 1 y=-8x + 3. 

Answers

Answer:

given

y=-8x+3

Interchanging the role of x and y

x=-8y+3

x-3=-8y

y=(3-x)/8

Inverse is y=(3-x)/8 or y=-(x-3)/8

The area of a rectangular shaped pool is 64 squared meters. The width is 9 meters. Write and solve an equation to determine the length of the pool. Show work.

Answers

Answer:

7.11

Step-by-step explanation: Area=lengthxwdth

64=lengthx9

64/9=length

7.11=length

15 points, solve a right triangle. Please simplify your answers as it says in the picture.

Answers

Given:

In triangle EFG, [tex]EF=10\sqrt{2}, m\angle G=90^\circ,m\angle E=60^\circ[/tex].

To find:

The measures of FG, EG and angle F.

Solution:

In triangle EFG,

[tex]m\angle E+m\angle F+m\angle G=180^\circ[/tex]           [Angle sum property]

[tex]60^\circ+m\angle F+90^\circ=180^\circ[/tex]

[tex]m\angle F+150^\circ=180^\circ[/tex]

[tex]m\angle F=180^\circ-150^\circ[/tex]

[tex]m\angle F=30^\circ[/tex]

In a right angle triangle,

[tex]\sin \theta=\dfrac{Perpendicular}{Hypotenuse}[/tex]

[tex]\sin E=\dfrac{FG}{EF}[/tex]

[tex]\sin (60^\circ)=\dfrac{FG}{10\sqrt{2}}[/tex]

[tex]\dfrac{\sqrt{3}}{2}\times 10\sqrt{2}=FG[/tex]

[tex]5\sqrt{6}=FG[/tex]

Similarly,

[tex]\sin F=\dfrac{EG}{EF}[/tex]

[tex]\sin (30^\circ)=\dfrac{EG}{10\sqrt{2}}[/tex]

[tex]\dfrac{1}{2}\times 10\sqrt{2}=EG[/tex]

[tex]5\sqrt{2}=EG[/tex]

Therefore, the required measures are [tex]FG=5\sqrt{6}, EG=5\sqrt{2}, m\angle F=30^\circ[/tex].

Write the ratios for sin A and cos A.

Answers

Answer:

Step-by-step explanation:

I am pretty sure it is B because if you do SOH CAH TOA you get that

2.93 km
Before the eruption of a volcano, the volcano was 2.93 kilometers
high. After the eruption, the volcano was 2.53 kilometers high
Use the bar diagram to find the difference in height of the volcano
before and after the eruption, in meters,
2.59 km
Click the icon to see the metric units of length
meters,
The difference in height of the volcano before and after the eruption is
(Type a whole number or a decimal)

Answers

Answer:

0.4

Step-by-step explanation:

which is greater? 0.04 or 0.39

Answers

Answer:

0.39

Step-by-step explanation:

think about it this way, if you take away the decimal it would be 39 and 04. 04 is another way to write 4 and  4 is less than 39. so 0.04 is less than 0.39

Answer:

0.04 > - 0.39

Step-by-step explanation:

0.04 > - 0.39

A bus makes a stop at 2:30, letting off 10 people and letting on 3. The bus makes another stop ten minutes later to let off 2 more people. How does the number of people on the bus after the second stop compare to the number of people on the bus before the 2:30 stop?

Answers

1 person is still
on the bus

C is the midpoint of AE. B is the midpoint of Ac. D is the midpoint of CE

Answers

Answer: d is correct

Step-by-step explanation:

Answer: what is the question

Step-by-step explanation:

find the height of a triangle with an area of 156 square kilometers and a base that measures 24 kilometers

Answers

Answer = 13 kilometers
hb = 2 a/b= 2 x 156/24 = 13

Pete's Pizza has a mean delivery time of 29 minutes with a standard deviation of 3 minutes. Determine the z-score for the number of pizzas delivered in less than 25 minutes.

Answers

Answer:

9 pizzas

Step-by-step explanation:

the right aswer is -1.33

• I am a fraction less than 1.
My denominator is a multiple of 5.
My denominator is less than 20.
• My numerator is a multiple of 4.
My numerator is 3 less than my
denominator.

Answers

Answer:

12/15

Step-by-step explanation:

3x5=15

4x3=12

15-12=3

Therefore the answer is 12 over 15


HELP HELP HELP HELP

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

Answers

The answer to this scatter plot question is y=1/3x-9

Find the volume of the cone. Round your answer to the nearest hundredth.
A) 129.72m^3
B) 134.04m^3
C) 137.71m^3
D) 143.04

Answers

Answer:

can we get the figure plz

It is commonly said that 10 of people are left-handed, but Lilianna suspected that a higher proportion of art students at her university are left-handed. To test this theory, she took a sample of 150 art students and found that p^=14% of the sample was left-handed.
To see how likely a sample like this was to happen by random chance alone, Lilianna performed a simulation. She took a sample of n=150 students from a population where 10% of the students were left-handed, and she recorded what proportion of the sample was left-handed. She repeated this process for a total of 50 samples. Here are the sample proportions from her 50 samples:

She wants to test H0:p=10% vs. Ha:p>10% where p is the proportion of art students at her university who are left-handed.

Based on these simulated results, what is the approximate p-value of the test?
Note: The sample result was p^=14%.

Answers

Answer: p-value ≈ 0.08

Step-by-step explanation:

The approximate p-value of the test is 0.0136 as per the data given in question.

What is p-value?

The p value is a number calculated from a statistical test that describes the likelihood of finding a specific set of observations if the null hypothesis is true.

To find the approximate p-value of the test, we need to compare the sample proportion p^ to the hypothesized proportion p0 = 10% under the null hypothesis H0:p=10% vs. Ha:p>10%.

Since the sample size n is large (n = 150) and the null hypothesis assumes a normal distribution.

We can use the normal approximation to the binomial distribution. Under the null hypothesis, the test statistic z is given by:

z = (p^ - p0) / sqrt(p0 * (1 - p0) / n)

Plugging in the values, we get:

z = (0.14 - 0.1) / sqrt(0.1 * 0.9 / 150)

z = 2.22

The approximate p-value for this one-tailed test can be found by looking up the area to the right of z = 2.22 under the standard normal distribution.

Using a standard normal distribution table or calculator, we find that the area to the right of z = 2.22 is approximately 0.0136.

Therefore, the approximate p-value of the test is 0.0136. This means that if the true proportion of left-handed art students at the university is 10%, there is approximately a 1.36% chance of getting a sample proportion of 14% or higher by random chance alone.

For more details regarding p-value, visit:

https://brainly.com/question/30078820

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What are the center and radius of the circle defined by the equation
x2 + y2 - 6x+10y + 25 = 0 ?
O A. Center (3,-5); radius 9
B. Center (-3, 5); radius 3
C. Center (3,-5); radius 3
D. Center (-3, 5); radius 9

Answers

Answer: Center (3,-5); radius 3

Step-by-step explanation:

The center and radius of the circle defined by the equation is (3, -5) and 3.

What is Equation of Circle?

The standard equation of a circle is given by:

(x-h)² + (y-k)² = r²

Where (h,k) is the coordinates of center of the circle and r is the radius.

We have Equation,

x² + y² -6x + 10y +25= 0

Now, rearranging the terms

x² -6x + y² +10y +25 = 0

Now, add and subtract 9

x² -6x + 9 + y² +10y +25  -9 = 0

(x-3)² + (y+5)² = 3²

(x- 3)² + y(-(-5))² = 3²

So, the Centre of Circle is (3, -5) and the radius is 3.

Learn more about Equation of Circle here:

https://brainly.com/question/29288238

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Select the correct answer.
Point P is the centroid of triangle JKL.
R
16
30
S
What is QL?
OA 32
OB. 45
OC 46
OD
48
OE. 64
Reset
Next

Answers

Answer:

D. 48

Step-by-step explanation:

QP = 16 (given)

LP = ?

Given that P is the centroid of the triangle, therefore:

QP = ⅓(QL) (based on the centroid theorem)

Plug in the value

16 = ⅓(QL)

Multiply both side by 3

3*16 = QL

48 = QL

QL = 48

peter weighs is 105 kg he wants to lose 500 g per week how many weeks will it take for him to have a mass of 90 kg ?

Answers

Answer:

it will take him 30 weeks

Step-by-step explanation:

2 weeks = 1 kilogram lost

105-90=15

1 x 15 = 15

2 x 15 = 30

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