You Have Decided to Live in a Converted Loft with Five

question 19

Multiple Choice

You have decided to live in a converted loft with five of your college friends. The loft is a large open room and as a group you have decided to divvy up the floor space using the Last-Diminisher Method. You label yourselves and the order in which the game is played has P₁ first, P₂ second, and so on. Here is how the method begins:

Round 1: P₁ makes the first cut; P₂ passes; P₃ passes; P₄ diminishes; P₅ diminishes; P₆ passes
Round 2: After the first claim is made, P₃ is the only diminisher.
Round 3: After the first claim is made, all the remaining players pass.
After the end of Round 3, which three players are still playing the game?

---

Definitions:

Seating Capacity

The number of people that can be accommodated in a space with seats, such as a theater, vehicle, or dining establishment.

Tax Revenue

The income that is gained by governments through taxation.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, leading to a stable market condition.

Tax Revenue

The income that is gained by governments through taxation of individuals and businesses.