Question
Consider a market with networkexternalities, where demand is Q=1001P. Let price initially be $40, where current demand without network externalities would be Q1=140.002.00P. Suppose the
Consider a market with networkexternalities, where demand is
Q=1001P.
Let price initially be $40, where current demand without network externalities would be
Q1=140.002.00P.
Suppose the price falls to $20, where demand without network externalities would be
Q2=120.002.00P.
With networkexternalities, the price change increases the quantity demanded by ____units. (Enter your response using an integer.)
Withoutexternalities, the price change would have increased the quantity demanded by ____units.
Therefore, the network externality_(increases /decreases)________the quantity demanded by_____units.
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