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Chevrolet sells a particular model in both the U.S. and in Spain. Currently the price is $30,000 in the U.S. At this price, the own-price

Chevrolet sells a particular model in both the U.S. and in Spain. Currently the price is $30,000 in the U.S. At this price, the own-price elasticity in the U.S. is -2. Currently the price is $30,000 in Spain too. At this price, the own-price elasticity in Spain is -3. For a variety of legal and logistical. reasons, the cars can only be sold in the country where they were produced. The marginal cost of producing the car is $15,000 in the U.S. and $20,000 in Spain. To maximize profits, Chevrolet should: O Nothing: the prices are already optimal in Spain and in the US Raise the price in Spain and lower the price in the US Lower the price both in Spain and in the US O Raise the price in the US and lower the price in Spain Raise the price both in Spain and in the US

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