If the price of a Spyder drops to $625,000, 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 the cars are sold at that price? Combined consumer surplus: $ c. How much revenue (price × quantity) will the car dealer get if he sells the cars at (i) the same price ($625,000)? $ (ii) the maximum price each buyer is willing to pay?
If the price of a Spyder drops to $625,000, 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 the cars are sold at that price? Combined consumer surplus: $ c. How much revenue (price × quantity) will the car dealer get if he sells the cars at (i) the same price ($625,000)? $ (ii) the maximum price each buyer is willing to pay?
Chapter3: Market Demand And Supply
Section3.7: A Market Supply And Demand Analysis
Problem 1YTE
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If the
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 the cars are sold at that price?
Combined consumer surplus: $
c. How much revenue (price × quantity) will the car dealer get if he sells the cars at
(i) the same price ($625,000)?
$
(ii) the maximum price each buyer is willing to pay?
$
Transcribed Image Text:Use the figure to answer three questions.
1,050,000
1,000,000
950,000
Price (dollars per car)
900,000
850,000
800,000
750,000
700,000
650,000-
600,000
5
0
1
Fred
2
Market Demand
Porsche Spyder
Michel
3
Hua
4
Carlos
5
John
6
Marty
7
Bob
8
Blaise
Quantity Demanded (cars per year)
9
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