Mike and David signed a loan agreement together to borrow money for a boat. If David leaves town and cannot be found, what happens to the loan? A) Mike must pay the full monthly payment. B) Mike must continue paying his half of the monthly payment. C) Mike and the lender must renegotiate the terms of the loan. D) Mike does not have to pay anymore because David has the boat.

You are the owner of a local honda dealership. unlike other dealerships in the area, you take pride in your “no haggle” sales policy. last year, your dealership earned record profits of $1.5 million. however, according to the local chamber of commerce, your earnings were 10 percent less than either of your competitors. in your market, the price elasticity of demand for midsized honda automobiles is 4.5. in each of the last five years, your dealership has sold more midsized automobiles than any other honda dealership in the nation. this entitled your dealership to an additional 30 percent off the manufacturer’s suggested retail price (msrp) in each year. taking this into account, your marginal cost of a midsized automobile is $11,000. what price should you charge for a midsized automobile if you expect to maintain your record sales?