Jane is interested in buying a car from a used car dealer Her maximum willingness to pay for the car is $12 (thousand) Bo, the dealer, is willing to sell the car as long as he receives at least $6 (thousand). Thus, there is a potential surplus or gain from trade of $6 (thousand). Jane and the dealer bargain over the transaction price, p. If they cannot agree on a price, then the transaction does not occur, and neither party receives any surplus. If instead, Bo can only get $5 (thousand) elsewhere, then the price that maximizes the Nash product changes by S thousand. (Enter your response rounded to one decimal place and include a minus sign if necessary) This change in price is in favor,

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Jane is interested in buying a car from a used car dealer Her maximum willingness to pay for the car is $12 (thousand). Bo,
the dealer, is willing to sell the car as long as he receives at least $6 (thousand). Thus, there is a potential surplus or gain
from trade of $6 (thousand). Jane and the dealer bargain over the transaction price, p. If they cannot agree on a price, then
the transaction does not occur, and neither party receives any surplus.
If instead, Bo can only get $5 (thousand) elsewhere, then the price that maximizes the Nash product changes by S
thousand (Enter your response rounded to one decimal place and include a minus sign if necessary)
This change in price is in
favor:
Transcribed Image Text:Jane is interested in buying a car from a used car dealer Her maximum willingness to pay for the car is $12 (thousand). Bo, the dealer, is willing to sell the car as long as he receives at least $6 (thousand). Thus, there is a potential surplus or gain from trade of $6 (thousand). Jane and the dealer bargain over the transaction price, p. If they cannot agree on a price, then the transaction does not occur, and neither party receives any surplus. If instead, Bo can only get $5 (thousand) elsewhere, then the price that maximizes the Nash product changes by S thousand (Enter your response rounded to one decimal place and include a minus sign if necessary) This change in price is in favor:
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