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Consider a housing market. Quality of houses are uniformly distributed between 2MSEK and 3MSEK, and for any house whose value, call X, is in this
Consider a housing market. Quality of houses are uniformly distributed between 2MSEK and 3MSEK, and for any house whose value, call X, is in this interval, a buyer is willing to pay at most X+100KSEK. Which houses will be traded in the market? Explain. /Show your work!/
Note: KSEK means thousand kronor, and MSEK means million kronor.
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