Higher prices result in a decreased demand

Reference no: EM131130435

For most products, higher prices result in a decreased demand, whereas lower prices result in anincreased demand (economist refer to such products asnormal goods). Let

d =annual demand for a product in units
p= price per unit
Assume that a firm accepts the following price-demand relationship as being a realisticrepresentation of its market:
d =800-10p

Reference no: EM131130435

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