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Question: i. Jim has a used car that is worth between 0 and 2000 pounds (an equal chance of each price in between). Doug is thinking of buying the car and knows it is worth 35% more to him than to Jim. Doug can make a take-it-or-leave-it offer to Jim. How much should Doug offer Jim?
ii. Above which value of how much more the car is worth to Doug than Jim would your answer in part A change? Please write your answer in terms of a percentage more, that is, x% more.
iii. What price should Doug offer Jim if the percentage exceeds that from your answer in (ii)?
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