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The multiplicative demand specification is very popular. Consider the multiplicative demand function Q = 6*P -1.5 .Suppose price is continually reduced.What is the marginal effect
The multiplicative demand specification is very popular. Consider the multiplicative demand function Q = 6*P-1.5.Suppose price is continually reduced.What is the marginal effect on quantity demanded of the continual reduction in price?
A.The marginal effect on quantity is constant.
B.The marginal effect on quantity increases as price is decreased.
C.The marginal effect on quantity decrease as price is decreased.
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