=+9.6 Business Application: Price Discounts, Substitutes, and Complements: A business might worry that pricing of one product

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=+9.6 Business Application: Price Discounts, Substitutes, and Complements: A business might worry that pricing of one product might impact demand for another product that is also sold by the same business.

Here, we’ll explore conditions under which such worries are more or less important before turning to some specific examples.

A. Suppose first that we label the two goods that a firm sells as simply x1 and x2

. The firm considers putting a discount of d on the price of x1

, a discount that would lower the price from p1 to 11 2 d2p1

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Microeconomics An Intuitive Approach With Calculus

ISBN: 9781337335652,9781337027632

2nd Edition

Authors: Thomas Nechyba

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Question Posted: Nov 04, 2024 06:00 AM

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=+9.6 Business Application: Price Discounts, Substitutes, and Complements: A business might worry that pricing of one product

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Microeconomics An Intuitive Approach With Calculus

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