Use the table below to answer the following questions.
Table 3.5.1
The Market for Car-Seat Heaters
-Refer to Table 3.5.1.Suppose a problem develops with car-seat heaters - they malfunction and occasionally cause serious burns.As a result,demand decreases by 100 heaters at each price.Simultaneously,the cost of production rises,and supply decreases by 100 heaters at each price.The new equilibrium price is $________ and the new equilibrium quantity is ________ heaters per month.
Definitions:
Discount Rate
This is the interest rate used in discounted cash flow analysis to determine the present value of future cash flows.
Salvage Value
The expected sale price of an asset at the end of its effective life.
Net Operating Cash Flows
The amount of cash generated by a company's normal business operations after paying operating expenses and taxes.
Present Value
The current worth of a future sum of money or stream of cash flows, given a specified rate of return.
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