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A local Barnes and Noble store has the following demand function for its textbooks: Q = 10,000 - 5,000P + 0.02Pop + 0.4I + 0.6A
A local Barnes and Noble store has the following demand function for its textbooks:
Q = 10,000 - 5,000P + 0.02Pop + 0.4I + 0.6A
Where Q is the quantity, P is the price, Pop is the population, I is the disposable income per capita, and A is the advertising expenditures.
- Determine the demand curve faced by the bookstore in a typical market where Pop = 500,000 person, I = $25,000 and A = $10,000. Show the demand curve with price expressed as a function of quantity.
- Calculate the prices necessary for the buyers to buy 10,000 units.
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