Unfortunately the price you charge (the one you just calculated) attracts many high cost customers and not very many low cost customers, as depicted in the below graph. Why won't this result in equilibrium? Identify and explain the equilibrium price and quantity on the graph. Price ($) 20,000 15,000 b 12 D (Low cost) 4 D P (Pessimistic Expectations) P (50-50 Expectations) (High cost) Quantity (Thousands of customers)

Unfortunately the price you charge (the one you just calculated) attracts many high cost customers and not very many low cost customers, as depicted in the below graph. Why won't this result in equilibrium? Identify and explain the equilibrium price and quantity on the graph. Price ($) 20,000 15,000 b 12 D (Low cost) 4 D P (Pessimistic Expectations) P (50-50 Expectations) (High cost) Quantity (Thousands of customers)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A
Unfortunately the price you charge (the one you just calculated) attracts many high cost
customers and not very many low cost customers, as depicted in the below graph. Why
won't this result in equilibrium? Identify and explain the equilibrium price and quantity on
the graph.
Price
20,000
15,000
b
12
D
(Low cost)
D
P (Pessimistic
Expectations)
P (50-50
Expectations)
(High cost)
Quantity
(Thousands of
customers)

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