Q7 Q7Continuing the previous example, byhow much will the demanded quantitychange if the price of apples increasesto 1.5?It will decrease by 0.4 million kilos.O It will decrease by 0.5 million kilos.O It will increase by 2 million kilos.It will increase by 0.5 million kilos.All the other answers are wrong. Q6The demand function for applesis the following.Qn = 10 - Pn + 0.2Y +0.5 P.- 2P, + 0.2AWhere:Qn = annual sales of apples(millions of kilos)Pn = price of apples (£1 per kilo)Y = disposable income in theUK £trillions (£10 trillions)Pc = price of a pies £ per kilo (£2per kilo)Ps = price of pear (£2 per kilo)A = advertising measured inhundreds of thousands of £5(use as 5 in your calculations)

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Answered: Continuing the previous example, by how…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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