If all water in California is sold for the market equilibrium price, would the allocation of water be more efficient? Why or why not?

Use the following information to work Problems 7 and 8.

The world’s largest tulip and flower market Every day over 19 million tulips and flowers are auctioned at the Dutch market called “The Bloemenveiling.” These Dutch auctions match buyers and sellers.

Source: Tulip­Bulbs.com In a Dutch auction, the auctioneer announces the highest price. If no one offers to buy the flowers, the auctioneer lowers the price until a buyer is found.