Question

1.4.2 Suppose a car dealership offers a low interest rate and a longer payoff period to customers or a high interest rate and a shorter payoff period to customers, and most customers choose the low interest rate and longer payoff period, does that mean that most customers want a lower interest rate? Explain.

Answer 1

Yes, customers that deal on cars

But no, if not car customers.

Explanation:

Most customers of cars want lower interest rate because it gives them opportunity to work for a longer period and gradually make the profit and pay back.

Even if it will take time that was why the dealer made it longer time.

But this might not apply to customer to other services because they might have their own principles or government/policies or interest rate to their customers.