what was with that question about cars? do the businesses buy only one car or do they buy 2 cars if they can? but then again why buy 2 when u can just buy one luxury car? so if personal max limit was 5,000 each for standard and luxury, does the 'personal' party have $10,000 in disposible income?
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did anyone do the ecmt3001 test today and if so..? (1 Viewer)
- Thread starter what971
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I think you meant ECOF3001.
In this question the buyer (personal/business) would buy the car depending on which one gave them the most consumer surplus.
There were several subparts in that question but there was one where the standard would cost 5000 and the luxury 18000 and the buyer had a WTP of 12000 and 18000 respefctively. As buying the standard would give him a consumer surplus 7000 he would choose it over the luxury one even though he can afford it.
In this question the buyer (personal/business) would buy the car depending on which one gave them the most consumer surplus.
There were several subparts in that question but there was one where the standard would cost 5000 and the luxury 18000 and the buyer had a WTP of 12000 and 18000 respefctively. As buying the standard would give him a consumer surplus 7000 he would choose it over the luxury one even though he can afford it.