Suppose we have a set of three sellers, labeled a, b, and c, and a set of three buyers, labeled…

Suppose we have a set of three sellers, labeled a, b, and c, and a set of three buyers, labeled x, y, and z. Each seller is offering a distinct house for sale, and the valuations of the buyers for the houses are as follows.

Suppose we have a set of three sellers, labeled a, b, and c, and a set of three buyers, labeled x,...

Suppose that a charges a price of 3 for his house, b charges a price of 1 for his house, and c charges a price of 0. Is this set of prices market clearing? If so, explain which buyer you would expect to get which house; if not, say which seller or sellers should raise their price(s) in the next round of the bipartite-graph auction procedure from Chapter 10.

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