1.5 Your firm, Content Friend, is similar to Happy Labourer, a Ghanaian firm that designs and manufactures artifacts and souvenirs. Your research analyst has estimated the demand function for your kente souvenirs is Qd = 33 - 4PIf you set the price of a plush kente souvenir at $5, how many will consumers buy?If you increase the price of a plush kente souvenir by $1, how will this change the quantity that your customers buy?

Demand function shows inverse relationship between price and quantity demanded.

Answered: 1.5 Your firm, Content Friend, is…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 7P

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1.5 Your firm, Content Friend, is similar to Happy Labourer, a Ghanaian firm that designs and manufactures artifacts and souvenirs. Your research analyst has estimated the demand function for your kente souvenirs is Qd = 33 - 4P

If you set the price of a plush kente souvenir at $5, how many will consumers buy?
If you increase the price of a plush kente souvenir by $1, how will this change the quantity that your customers buy?

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