Answer: 85

## Explanation In a Dutch auction (also known as a uniform price auction), all winning bidders pay the same price - the lowest accepted bid price that fills the offering. **Step-by-step calculation:** 1. **Sort bids by price in descending order:** - C: 5,000 shares @ $90 - G: 8,000 shares @ $86 - D: 6,000 shares @ $85 - F: 4,000 shares @ $84 - A: 3,000 shares @ $80 - B: 2,000 shares @ $73 - E: 9,000 shares @ $70 2. **Cumulative shares from highest to lowest bids:** - C: 5,000 shares (cumulative: 5,000) - G: 8,000 shares (cumulative: 13,000) - D: 6,000 shares (cumulative: 19,000) - F: 4,000 shares (cumulative: 23,000) 3. **Determine the clearing price:** - We need to sell 20,000 shares - At bidder D (price $85), cumulative shares = 19,000 (still need 1,000 more) - At bidder F (price $84), cumulative shares = 23,000 (exceeds 20,000) - Therefore, the lowest accepted bid that fills the offering is bidder F at $84 4. **All winning bidders pay $84** (the lowest accepted bid price) **Winning bidders:** C, G, D, and enough of F to reach 20,000 total shares: - C: 5,000 shares - G: 8,000 shares - D: 6,000 shares - F: 1,000 shares (of their 4,000 bid) **Total:** 5,000 + 8,000 + 6,000 + 1,000 = 20,000 shares All pay $84 per share, which is the **clearing price** in this Dutch auction.

Author: LeetQuiz .