Explain how demand change affects price and quantity

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Q. A proposed new investment has projected sales of $740,000. Variable costs are 60% of sales and fixed costs are $173,000; depreciation is $75,000. Trying to prepare a pro forma income statement assuming a tax rate of 35% and figure out projected net income?

Q. Supposes a perfectly competitive, increasing-cost industry is initially in long-run equilibrium and demand suddenly increases. Explain how demand change affects price and quantity and who benefits from increased demand.

Reference no: EM1371610

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