Most important determinants of the demand

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Q1. A discount store has a special offer on DVD players and lowers their price from $150 to $100. Assume the store manager observes that the quantity demanded increases from 700 CD players to 1,300 DVD players. Illustrate what is the price elasticity of demand for DVD players?

Q2. (a) Illustrate what are the most important determinants of the demand function that a firm faces for the commodity it sells?

(b) Illustrate what is meant by producer's goods and by derived demand?

(c) Why is the demand for durable goods (both consumers' and producers') less stable than the demand for nondurable goods?

Reference no: EM139298

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