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3. Quantitative Question: Assume that a consumer is choosing between two somewhat comparable cars, a BMWS and 3 Tesla 5. Using Exhibit 9 in the

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3. Quantitative Question: Assume that a consumer is choosing between two somewhat comparable cars, a BMWS and 3 Tesla 5. Using Exhibit 9 in the case, and starting with the BMWS as the base case, calculate the differential in willingness to pay (WTP) for a consumer choosing between the two vehicles. At a price of $61,070, will the Tesla S be successful? Is your answer still true if the government offers no tax credits for electric cars? What has to be true to make the Tesla S an attractive option to the consumer in each case? [To complete this question, start with a BMW 5-series price and calculate the different elements in a consumer's WTP that would enhance (or diminish) their WTP for Tesla. Do those additional elements get us to a price of at least a Tesla 5?]

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