Consider the multiplicative demand function Q = 4*P-1.2. Suppose price is reduced from 8 to 7. What is the marginal effect on quantity demanded of the one unit change, that is, what is AQ from the one (1) unit change in P from 8 to 7? O A. .057. O B. .034 O C. .11. O D..31. O E. 1.2.

Consider the multiplicative demand function Q = 4*P-1.2. Suppose price is reduced from 8 to 7. What is the marginal effect on quantity demanded of the one unit change, that is, what is AQ from the one (1) unit change in P from 8 to 7? O A. .057. O B. .034 O C. .11. O D..31. O E. 1.2.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Consider the multiplicative demand function Q = 4*P-1.2. Suppose price is reduced from 8 to 7. What is the
marginal effect on quantity demanded of the one unit change, that is, what is AQ from the one (1) unit change in P
from 8 to 7?
O A. .057.
О В. 034
ОС. 11.
O D.31.
O E. 1.2.

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