On a new SA, let's say you have $400 left to sell for the month. What if you list something for bid Starr at a dollar, and it goes over $400, what happens? does bay automatically stop the auction at $400 with 24 hours to go, or do they just remove your listing?
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Nope, you just won't be able to list anymore for the month. If your limit is $500 per month and you list one item that sells for $2000, then you just won't be able to list anymore for the month since you went over the limit. They don't end your auction, they don't stop it once it hits $500, etc.
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No, you will still be able to sell it at any price above your $400 limitation. But if you want to sell
Another item which exceeds your limitation then you would need more allowance.
Yes as long as it's for bid you can still sell it about $400 limit, and afterwards you might be able to get a limit raise! But be wary ebay MIGHT check the account before raising it to see if what you're selling is legit