Question

An antique cabinet is being sold by means of an English auction. There are four bidders, Gloria, Elise, Judy, and Arabella. These bidders are unacquainted with each other and do not collude. Gloria values the cabinet at $800, Elise values it at $500, Judy values it at $1,800, and Arabella values it at $600. If the bidders bid in their rational self-interest, the cabinet will be sold to ______ at price ______.

Answer 1

Answer and Explanation:

The English auction is a unique process of selling items, under which the auction starts at a low price and goes up to the maximum price and the item is sold to the highest bidder.

In this situation, Judi makes the highest bid which is worth $1,800, therefore, the cabinet will be sold to Judi at price $1,800 .