Final answer:
The online auction website project is an application of economics, particularly in the creation of a market where buyers and sellers engage in transactions. Improved transparency and information in such a market can lead to increased demand and a higher quantity of quality goods supplied. The Correct option is B)Each item has a bidding start time, and end time, and an owner. Sellers are owners of their item. The start time and end time include the date as well.
Step-by-step explanation:
The project in question is focused on the development of an online auction website where buyers and sellers can partake in the trade of items. This scenario exemplifies a practical application of economics, as it involves the concepts of markets, supply, demand, and equilibrium. For instance, the auction website described creates a market that brings both buyers and sellers together for transactions much like what is learned in an economics unit. Sellers, who are the owners of the items, provide a supply that is auctioned off to buyers, and the resulting prices can be seen as an equilibrium price where the quantity supplied matches the quantity demanded. In a case where a website sets rules for improving information transparency, such as requiring independent examinations of items like emeralds, the demand for these goods can increase as potential buyers feel more confident in the quality and authenticity of the products being sold. Similarly, the supply of high-quality emeralds is likely to increase as sellers willing to meet these standards enter the market, leveraging their assurance of quality to fetch better prices.
These informed exchanges where buyers and sellers are well educated about products, and where there is a free entry and exit from the market, ordinarily lead to pure competition. This creates an efficient market structure as seen in the proposed online auction platform for buyers and sellers to engage economically. So, the Correct option is B)Each item has a bidding start time, and end time, and an owner. Sellers are owners of their item. The start time and end time include the date as well.