Last modified on 25 May 2012, at 00:45

Fundamentals of Transportation/Economics/Problem

TProblem
Problem:

A poll is taken in about selling a sports car. There are 1000 subjects. The results came back for the two questions, with the number of people who replied yes:

Question 1:

  • Would you buy a brand new sports car for $500,000? 10 people
  • Would you buy a brand new sports car for $50,000? 95 people
  • Would you buy a brand new sports car for $5,000? 812 people
  • Would you buy a brand new sports car for $500? 995 people
  • Would you buy a brand new sports car for $50? 999 people
  • Would you buy a brand new sports car for $5? 1000 people

Question 2:

  • Would you sell your brand new sports car for $500,000? 995 people
  • Would you sell your brand new sports car for $50,000? 500 people
  • Would you sell your brand new sports car for $5,000? 90 people
  • Would you sell your brand new sports car for $500? 3 people
  • Would you sell your brand new sports car for $50? 1 person
  • Would you sell your brand new sports car for $5? 0 people

What would be the appropriate balance of price and number of people interested?