The World’s Largest Tulip and Flower Market Every day 20 million tulips, roses, and other cut flowers are auctioned at the Dutch market called The Bloemenveiling. Each day 55,000 Dutch auctions take place, matching buyers and sellers.

Source: Tulip-Bulbs.com A Dutch auction is one in which the auctioneer starts by announcing the highest price. If no one offers to buy the flowers, the auctioneer lowers the price until a buyer is found.

a. What method is used to allocate flowers at the Bloemenveiling?

b. How does a Dutch flower auction influence consumer surplus and producer surplus?

c. Are the flower auctions at the Bloemenveiling efficient?