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Assume the following demand and supply functions:
Demand: Q = 600 - .1P
Supply: Q = -150 + .5P
(a) Calculate equilibrium price and quantify
(b) Now assume that a seller declares 20% sale on the market equilibrium price. What will happen?
(c) If a seller decides to charge 20% more price than the market equilibrium price, what will happen?
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Use the updated demand (QD) and marginal revenue (MR) functions below to complete this assignment. Due to changes in the low calorie, frozen, microwavable industry’s market structure, the firm-specific demand equation for our hypothetical company has..
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