Question: 1.3.5 The estimated Tesla demand function for the S 100D car is QA = 78- 0.6pA in the United States and QE = 36.8- 0.16pE

1.3.5 The estimated Tesla demand function for the S 100D car is QA = 78- 0.6pA in the United States and QE = 36.8- 0.16pE in Europe, as Figure 12.3 illus trates. Using that and other information from the Application “Tesla Price Discrimination,” confirm that Tesla’s profit-maximizing prices and quantities are those in Figure 12.3. M

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