Problem 4: Let’s imagine you own a Porsche dealership that has been authorized to sell the new 911, which has a suggested retail price of $70,000. Dealerships commonly adjust price substantially upwards or downwards in response to local demand conditions. You think the demand for the 911 looks as follows in your market: Price (S) Sales Volume 600 840 480 10,000 20,000 30,000 40,000 60,000 70,000 80,000 90,000 100,000 360 300 240 180 120 60
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