Suppose the market demand curve for a good is represented by the linear equation Q = 60 - 0.75P. If the market price were to decrease from P = $60 to P = $40, then holding all other factors constant, how many units would quantity demanded change and how many dollars would total expenditures increase/decrease?
The quantity demanded would increase... View the full answer
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To find quantity demanded, substitute the old and new prices in the demand equation. Expenditures is... View the full answer