Suppose the company is considering investing $20 million in a new marketing campaign.They estimate they would sell an additional 5,000 vehicles if the price is $50,000/vehicle, or an additional 6,000 vehicles if the price is $40,000/vehicle.Would this be a profitable investment under either scenario?

4. (10) Suppose you own a sandwich shop with fixed costs of $1,000/month and marginal costs of $2.00/sandwich. If the price is $6/sandwich, 500 sandwiches are sold. If the price is $4.50/sandwich, 800 sandwiches are sold.

a.)(4) Use these figures to calculate the price elasticity.

b.)(6) Calculate the profits and profit margins (profit/total cost) associated with the price at $6/sandwich and at $4.50/sandwich.Given these calculations, what price should be charged for sandwiches?