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2. Consider a market with many buyers, where the demand function is given by QD = 30010P. a.)HowmanyunitsaredemandedatapriceofP =5? AtapriceofP =20? b.)Does the Law of
2. Consider a market with many buyers, where the demand function is given by QD = 30010P.
- a.)HowmanyunitsaredemandedatapriceofP =5? AtapriceofP =20?
- b.)Does the Law of Demand hold for this demand function? What mathematical sign in the demand function equation supports your answer?
- c.)Carefully graph the demand function. What is its slope?
- d.)What if the demand function in this question shifted to QD = 35010P? Carefully graph this new demand function. Is this a demand increase or decrease? What kind of demand parameter changes could bring about this shift? Give two examples and be specific (don't just say "change in the price of a related good.")
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What Environmentalists Need To Know About Economics
Authors: Jason Scorse
1st Edition
0230107311, 9780230107311
