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Suppose that the sales function for a product L has been estimated as: Q L =7-1.6P L -.2P C +.8P S +.0005Y+.0004A Where, Q L
Suppose that the sales function for a product L has been estimated as:
QL=7-1.6PL-.2PC+.8PS+.0005Y+.0004A
Where, QL is the quantity of product L demanded, in thousand per month.
PL is the price of product L, which is currently $15
PC is the price of product C, which is currently $25;
PS is the price of product S, which is currently $20;
Y is the level of per capita income, which is currently $20,000; and
A is monthly advertising, which is currently $15,000.
Express the equation for the demand curve for L.
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