1,050,000 1,000,000 950,000- Price (dollars per car) 900,000- so850,000- 800,000 0750,000- 700,000- 650,000- 600,000+ 0 Fred 8 1 Michel Hua Carlos John Marty Bob Blaise Quantity Demanded(cars per year) If the price of a Spyder drops to $650,000, Instructions: Enter your responses as a whole number. a. how many Spyders can be sold at that price? b. how much consumer surplus will there be if all the cars are sold at that price? Combined consumer surplus: $ c. how much revenue (= price * quantity) will the car dealer get if he sells all the cars at (i) the same price ($650,000)? $ 5200000 (ii) the maximum price each buyer is willing to pay?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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1,050,000
1,000,000-
950,000
Price (dollars per car),
900,000-
so850,000-
800.000
2750,000-
700,000-
650,000-
600,000+
0
Fred
8
Michel
1 2
Hua
******
$5200000
3
4
5
John
Marty
Bob
Blaise
8 9
Quantity Demanded(cars per year)
If the price of a Spyder drops to $650,000,
Instructions: Enter your responses as a whole number.
a. how many Spyders can be sold at that price?
b. how much consumer surplus will there be if all the cars are sold at that price?
Combined consumer surplus: $
c. how much revenue (= price x quantity) will the car dealer get if he sells all the cars at
(1) the same price ($650,000)?
(ii) the maximum price each buyer is willing to pay?
Transcribed Image Text:1,050,000 1,000,000- 950,000 Price (dollars per car), 900,000- so850,000- 800.000 2750,000- 700,000- 650,000- 600,000+ 0 Fred 8 Michel 1 2 Hua ****** $5200000 3 4 5 John Marty Bob Blaise 8 9 Quantity Demanded(cars per year) If the price of a Spyder drops to $650,000, Instructions: Enter your responses as a whole number. a. how many Spyders can be sold at that price? b. how much consumer surplus will there be if all the cars are sold at that price? Combined consumer surplus: $ c. how much revenue (= price x quantity) will the car dealer get if he sells all the cars at (1) the same price ($650,000)? (ii) the maximum price each buyer is willing to pay?
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