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d. How much would you have to change the interest rate to sell the profit maximizing quantity of Corollas computed in part c (assuming
d. How much would you have to change the interest rate to sell the profit maximizing quantity of Corollas computed in part c (assuming that the price remains at $17,000- i.e. P=17)? N e. Further research by Toyota into the demand for its Corolla model indicates that there are two distinct groups of customers. One group is more sensitive to interest rates and the other group is more sensitive to prices. Toyota is able to distinguish the two groups based on whether they are looking to obtain financing from Toyota or whether they come to the showroom with their own financing. Statistical analysis indicates that the two groups have the following demand curves: Q=300-12P-3i+15D 1 Q=278-16P-2i+15D Assuming that i=10 and D=2, what price should Toyota charge to the two groups of customers? N How many cars will they sell to each group? N How much higher will profits be compared to the single profit maximizing price computed in part c? N
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