Imagine that you own a mint-condition recording of Elvis Presley’s first album. Because you are not an Elvis Presley fan you decide to sell it. One way to do so is to hold an auction. Four Elvis fans show up for your auction: john, George and Ringo. Each of them would like to own the album but there is a limit to the amount that each is willing to pay for it. Table the maximum pric that each of the four possible buyers would pay. Each buyer’s maximum is called his willingness to pay and it measures how much that buyer values the good. Each buyer would be eager to buy the album at a price less than his willingness to pay and he would refuse to buy the album at a price get rater than his willingness to pay. At a price equal to his willingness to pay the buyer would be indifferent about buying the good. If the price is exactly the same as the value he places on the album he would be equally happy buying it or keeping his money. To sell your album you begin the bidd...