In May 1991, Car and Driver described a Jaguar that sold for . At that price only have been sold. It is estimated that could have been sold if the price had been . Assuming that the demand curve is a straight line, and that and are the equilibrium price and quantity, find the consumer surplus at the equilibrium price.

Phoenix guitars is interested in pursuing backward integration to take greater ownership of the extraction of raw materials and production of components used in its signature line of guitars. although this approach would lower the overall cost of producing a guitar, the costs associated with producing electronic pickupsfor sound amplification are far greater than those associated with sourcing pickups from a reliable supplier. which of the following approaches is likely to produce superior results? a) invest in vertical integration despite the cost of producing pickups.b) abandon the idea of vertical integration entirely.c) pursue taper integration.d) introduce a budget line of guitars to diversify the firm's offerings.