You are playing a game in which a dollar bill is auctioned. The highest bidder receives the dollar in return for the amount bid. However, the second-highest bidder must pay the amount that he or she bids, and gets nothing in return.
The optimal strategy is: A) to bid the smallest allowable increment below 1.
B) to bid nothing.
C) to bid 0.99.
D) to bid more than a dollar.
Question 2
The point price elasticity of demand is -1/2. The price of the product increases from 1.00 to 1.10. Given the information in Scenario 4.3, the quantity demanded will decrease by approximately:
A) 5 units.
B) 5 percent.
C) 10 units.
D) 10 percent.
E) none of the above
Bill Viola, The Reflecting Pool.
Bill Viola, The Reflecting Pool.
Mel Chin, Operation Paydirt/Fundred Dollar Bill Project.
Working and Living and Playing in the City Dump of Phnom Penh, Cambodia
Working and Living and Playing in the City Dump of Phnom Penh, Cambodia
Kids/ friends playing together