Microeconomics Extra Credit

Microeconomics Extra Credit
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  • Me and my wife would like to buy the red car, can you help us?
  • Of course! Follow me inside and we can crunch some numbers.
  • We know what car you want, now how much are you willing and able to pay?
  • Our combined income will allow us to pay $12,000 for the car even though you are asking $12,500 for it.
  • Because we are the only dealership that residents of this town can buy from, we are a monopoly. That being said, we are able to choose the price we sell our product at with price discriminate. That is why the couple left with a new car!
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