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g.) Suppose sellers change so that they like cars slightly more. This causes sellers' utility to change to: Us: Z 2X j+ 400 i=1 3
g.) Suppose sellers change so that they like cars slightly more. This causes sellers' utility to change to: Us: Z 2X j+ 400 i=1 3 Buyers' utility does not change. Under this regime, will any used cars be exchanged? h.) Suppose sellers' valuation of cars does not change (coefficient goes back to 1A), but the government introduces a price ceiling such that the market price for a used car cannot exceed $1,000. Under this regime, will any used cars be exchanged? i.) Suppose there is no price ceiling (price hack to 4,000) and buyers' valuation of cars does not change (coefficient still 1/5), but the government imposes a minimum car quality guaranteed such that cars worth less than $2,000 cannot be placed on the market. Under this regime, will any used cars be exchanged
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