Sam's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Sam produced four fire engines, but he has decided to increase production to five fire engines. The following graph shows the demand curve Sam faces. As you can see, to sell the additional engine, Sam must lower his price from $105,000 to $90,000 per fire engine. Note that while Sam gains revenue from the additional engine he sells, he also loses revenue from the initial four engines because he sells them all at the lower price. Sam's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Sam produced four fire engines, but he has decided to increase production to five fire engines. The following graph shows the demand curve Sam faces. As you can see, to sell the additional engine, Sam must lower his price from $105,000 to $90,000 per fire engine. Note that while Sam gains revenue from the additional engine he sells, he also loses revenue from the initial four engines because he sells them all at the lower price.