Jane is interested in buying a car from a used car dealer. Her maximum willingness to pay for the car is $14 (thousand). Bo, the dealer, is willing to sell the car as long as he receives at least $8 (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 $6 (thousand) elsewhere, then the price that maximizes the Nash product changes by $thousand. (Enter your response rounded to one decimal place and include a minus sign if necessary.)

Jane is interested in buying a car from a used car dealer. Her maximum willingness to pay for the car is $14 (thousand). Bo, the dealer, is willing to sell the car as long as he receives at least $8 (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 $6 (thousand) elsewhere, then the price that maximizes the Nash product changes by $thousand. (Enter your response rounded to one decimal place and include a minus sign if necessary.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

interested in buying a car from a used car dealer. Her maximum willingness to pay for the car is $20 (thousand). Bo, the dealer, is willing to sell the car as long as he receives at least $8 (thousand). Thus, Jane there is a potential surplus or gain from trade of $12 (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 $ - 1.5 thousand. (Enter your response rounded to one decirmal place and include a minus sign if necessary.) This change in price is in Jane's favor.
K Jane is interested in buying a car from a used car dealer. Her maximum willingness to pay for the car is $14 (thousand) Bo, the dealer, is willing to sell the car as long as he receives at least $12 (housand) Thus, there is a potential surplus or gain from trade of $2 (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 $11 (thousand) elsewhere, then the price that maximizes the Nash product changes by thousand (Enter your response rounded to one decimal place and include a minus sign if necessary)
Scott loves to go to baseball games, especially home games of the Cincinnati Reds. All else equal, he likes to sit close to the field. He also like to get to the stadium early to watch batting practice. The close to the stadium he parks, the more batting practice he's able to watch (the garages all open simultaneously). Parking Location Westin Parking garage Fountain Square South Garage West River Parking East River Parking Under Stadium Parking Parking fee (game night) $5 $10 $17 $25 $45 Missed batting practice Westin Parking garage Fountain Square South Garage West River Parking O East River Parking ○ Under Stadium Parking 60 min 50 min 25 min 10 min O min Benefit of arrival time $0 $10 $35 $25 $60 Using the information in the Table above, Scott's optimal parking garage is should park). (hint: use marginal analysis to determine where Scott
Suppose that there are three beachfront parcels of land available for sale in Astoria and six people who would each like to purchase one parcel. Assume that the parcels are essentially identical and that the minimum selling price of each is $570,000. The following table states each person's willingness and ability to purchase a parcel. Person Willingness and Ability to Purchase (Dollars) Ana 630,000 Charles 590,000 Dina 550,000 Gilberto 510,000 Juanita 500,000 Yakov 700,000 Which of these people will buy one of the three beachfront parcels? Check all that apply. Ana Charles Dina Gilberto Juanita Yakov Assume that the three beachfront parcels are sold to the people that you indicated in the previous section. Suppose that a few days after the last of those beachfront parcels is sold, another essentially identical beachfront parcel becomes available for sale at a minimum price of $560,000. This fourth parcel ____ (will,…
Suppose that there are three beachfront parcels of land available for sale in Asilomar and six people who would each like to purchase one parcel. Assume that the parcels are essentially identical and that the minimum selling price of each is $745,000. The following table states each person's willingness and ability to purchase a parcel. Person Willingness and Ability to Purchase (Dollars) Charles 900,000 Dina 810,000 Gilberto 770,000 Juanita 720,000 Lorenzo 690,000 Neha 680,000 Which of these people will buy one of the three beachfront parcels? Check all that apply. Charles Dina Gilberto Juanita Lorenzo Neha Assume that the three beachfront parcels are sold to the people that you indicated in the previous section. Suppose that a few days after the last of those beachfront parcels is sold, another essentially identical beachfront parcel becomes available for sale at a minimum price of $732,500. This fourth…
Stasia needs a new roof. She finds Stan, a roofing contractor, through an ad he posted in the local newspaper. Stan paid $60 to post the aid in the newspaper. After Stasia and Stan agree on the price for the new roof, they sign a contract, which stasia has a law firm write up for $95, stating that Stan will install Stasia's new roof for $2,200. The transaction costs associated with this exchange are ? a) $60 b) $155 c) $95 d) $2,355
1. Dave Grohl wants to buy drums and guitars. Drums are sold in an unusual way. There is only one supplier, and the more drums you buy from him, the higher the price you have to pay per unit. In fact, y units of drums will cost Dave y² dollars. Guitars are sold in the usual way at a price of 2 dollars per unit. Dave's income is 20 dollars, and his utility function is U (x,y) = x+2y, where x is his consumption of guitars and y is his consumption of drums. A. Sketch Dave's budget set and shade its in. B. Sketch some of his indifference curves and label the point that he chooses. C. Calculate the number of drums and guitars that Dave demands at these prices and this income.
Juanita is deciding whether to buy a dress that she wants, as well as where to buy it. Three stores carry the same dress, but it is more convenient for Juanita to get to some stores than others. For example, she can go to her local store, located 15 minutes away from where she works, and pay a marked-up price of $102 for the dress: Travel Time Each Way (Minutes) Store Local Department Store 15 O+ F4 Marked-up price Juanita's office Price of a Dress (Dollars per dress) 102 F6 M F7 F8 Discounted price Original price F9 F10
Consumer surplus is calculated by taking the difference of the price consumers are willing to pay and the price actually paid. When the price is $4, the consumer would buy only two bottles because the value the consumer would get from the first bottle is $7. This implies, the surplus is $3. Similarly for the second bottle, the value the consumer would get from consuming it is $5 where the price the consumer will pay is $4, this implies the surplus is $1. Lastly, for the third bottle the value is $3 and the price is $4 so the price surpasses the value, therefore the consumer will not consumer beyond two bottles. The consumer surplus could be calculated as: Consumer Surplus = (7-4) + (5-4) = 3 + 1 = 2 This means the consumer will buy two bottles. If the price falls to $2, the consumer would only buy three bottles because the value the consumer gets from the first bottle valued at $7 versus the $2 paid implies a consumer…
Use the scenario below to answer the question. Chocolate raisin protein bars are Duc’s favorite dessert. A local bakery sells them for $1.00 each. Duc buys one and eats it at the bakery. Duc decides that he wants another one, but is not willing to pay full price. He knows the owner of the bakery and wants to negotiate. He offers to buy two more protein bars at $0.75 each. He plans to eat one at the store and anther one later. The bakery owner agrees to the deals. What is the total utility of Duc’s decision? 00 75 50 00
Suppose that there are three beachfront parcels of land available for sale in Astoria, and six people who would each like to purchase one parcel. Assume that the parcels are essentially identical and that the selling price of each is $745,000. The following table states each person's willingness and ability to purchase a parcel. Willingness and Ability to Purchase (Dollars) Alyssa 720,000 Brian 690,000 Crystal 680,000 Nick 900,000 Rosa 810,000 Tim 770,000 Which of these people will buy one of the three beachfront parcels? Check all that apply. Alyssa Brian Crystal Nick Rosa Tim Assume that the three beachfront parcels are sold to the people you indicated in the previous section. Suppose that a few days after the last of those beachfront parcels is sold, another essentially identical beachfront parcel becomes available for sale at a price of $732,500. This fourth parcel _____________be sold…
Jay and Amile go trick-or treating. Initially, Jay gets Skittles and Amile gets a Kit-Kat. Neither of them has to pay anything for this candy. Their valuation of each good is given in the table below. They decide to trade. What is the new total economic surplus? Skittles Value Kit-Kat Value Jay Amile 2 1 A) 8 B) 6 C) 2 O D) 4