7. at a price of $2.00, total surplus is a. larger than it would be at the equilibrium price. b. the same as it would be at the equilibrium price. c. smaller than it would be at the equilibrium price. d. there is insufficient information to make this determination.

Quick computing currently sells 12 million computer chips each year at a price of $19 per chip. it is about to introduce a new chip, and it forecasts annual sales of 22 million of these improved chips at a price of $24 each. however, demand for the old chip will decrease, and sales of the old chip are expected to fall to 6 million per year. the old chips cost $10 each to manufacture, and the new ones will cost $14 each. what is the proper cash flow to use to evaluate the present value of the introduction of the new chip? (enter your answer in millions.)