If competitor increases its price what is the likely impact

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1. a) If a competitor increases its price what is the likely impact? Please support your argument using the economic principles you have been reviewing.

b) Quick Profit sells box juice for $7.50 and has an demand function of: Q = 300 - 20P. At the present price Quick Profit is unable to satisfy demand. The owner, Mr. Ready, wants to increase the price by 100%. Do you agree? Explain!

Reference no: EM13742723

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