Question
For questions 6 - 9 use the following information. Robi Inc. is the dominant producer of battery-powered yard equipment. Demand for Robi's products increases with
For questions 6 - 9 use the following information. Robi Inc. is the dominant producer of battery-powered yard equipment. Demand for Robi's products increases with the price of gasoline is high: Q = 56 2 P + 2 PG where Q is the quantity of Robi's products, P is the price of Robi's products, and PG is the price of gasoline. Currently, the price PG of gasoline is $2.00. 8. Suppose that the price PG of gasoline increases from $2 to $4. What happens to the profit-maximizing quantity Q and price P, and to Robi's profit ? A. P goes up, Q goes down, goes up B. P goes down, Q goes up, goes down C. P, Q, and all go up D. P, Q, and all go down E. None of the other choices is correct
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