From the C-J (Yearling sale posts largest declines in its history):
The 66th annual Keeneland September Yearling Sale concluded a dismal 14-day run on Monday — posting the largest decreases in the history of the auction, which is the biggest for 1-year-old thoroughbreds in the world.
The sale’s $191.9 million gross was down 41.5 percent from last year, with only 3,159 yearlings sold, compared to 3,605 last year, a 12.4 percent decline.
This year’s average sale price of $60,734 was down 33.2 percent, while the median of $22,000 was down 40.5 percent.
Questions:
- What was the gross revenue last year?
- What is the change in gross revenue?
- Assuming that the change in market equilibrium is due entirely to a demand shift, calculate the change in producer surplus.
- Why do your answers to 2 and 3 differ?
