A manufacturer of a new patented product has found that he can sell 70 units a week to the customer if the price is $48. In error, the price was recently advertised at $78 and as a result, only 40 units were sold in a week. The manufacturers fixed costs of production are $1,710 a week and variable costs are $9 per unit. You are required to: d. Assuming a sudden change in trading conditions resulting in a 20% reduction in demand at all price levels, to find the equation of the new demand function and to recommend how the manufacturer should respond.

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