What is a Dutch auction? What will be an ideal ...

[LaDunn]

What is a Dutch auction?
 
  What will be an ideal response?

Question 2

Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. If the price of iced tea is 1
 
  A) not enough consumers want to buy iced tea.
  B) the quantity supplied is economically efficient but the quantity demanded is economically inefficient.
  C) economic surplus is maximized.
  D) the quantity supplied is less than the economically efficient quantity.

[vickybb89]

Answer to Question 1

A Dutch auction is an open outcry auction in which the price decreases until a bidder stops the auction; that is, the auctioneer begins the bidding at an offer price above any bidder's value and lowers the price until someone purchases the item. The first person who bids who ends the auction, wins the item, and pays his or her bid.

Answer to Question 2

D

[LaDunn]

Thanks for the timely response, appreciate it

[amcvicar]

Excellent