If John's maximum price threshold increased by 70 percent, Instructions: Enter your response as a whole number. (Note: Consumer surplus is never a negative number.) a. would he buy a Spyder at a market price of $847,975? Yes b. how much consumer surplus would he have? $ 8,025 8

If John's maximum price threshold increased by 70 percent, Instructions: Enter your response as a whole number. (Note: Consumer surplus is never a negative number.) a. would he buy a Spyder at a market price of $847,975? Yes b. how much consumer surplus would he have? $ 8,025 8

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 4E

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Question

Trying to calculate the answer I got wrong.

If John's maximum price threshold increased by 70 percent,
Instructions: Enter your response as a whole number. (Note: Consumer surplus is never a negative number.)
a. would he buy a Spyder at a market price of $847,975?
Yes
b. how much consumer surplus would he have?
$ 8,025 8

Use the figure to answer two questions.
Market Demand
for Porsche Spyder
1,050,000-
Fred
1,000,000-
Michel
950,000-
Hua
900,000-
Carlos
„850,000-
John
2800,000-
Marty
750,000
Bob
700,000-
Blaise
850,000-
800,000+
2
3
5
8
9
Quantity Demanded(cars per year)
Price (dollars per car)

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