Question: 4. You discover rather late in the process that the Coronet Elizabeth model sold to police departments is somewhat different than that sold to corporate

 4. You discover rather late in the process that the Coronet

4. You discover rather late in the process that the Coronet Elizabeth model sold to police departments is somewhat different than that sold to corporate fleets. Specifically, the police model includes a slightly souped-up engine, bullet-proof glass in all windows, a metal grill separating the front and back seats, and plastic doughnut holders for both front seats. As a result, the police version of the Coronet Elizabeth costs $16,000 to manufacture versus $15,000 for the corporate version. How would this change the optimal prices for police purchase of 20 and 40 vehicles? (Note, you do not need to run any regressions to answer this question.)

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