Free Ferraris There is a Ferrari dealership that I have to…

Free Ferraris There is a Ferrari dealership that I have to pass every day on my way to work. The cars are beautiful out in the front of the dealership along the highway; mostly red with some bright yellows. I have always been a little self-conscious being a teacher, to actually go inside. When I looked up the prices on the Internet, the cheapest one is about $250,000. They only make a few Ferraris every year and there is a two year waiting list for new models.  Use the proper economic terminology of supply and demand to answer the following questions:1. Use supply and demand to explain why Ferraris cost so much?2. What if tomorrow I saw a sign placed by the government on the dealership window that said “Free Ferraris”, would I now be able to own one (use the concept of surplus or shortage to explain)?3. What would be the fairest way to distribute them for both Ferrari and those that want them? What would the price be?