The following is the demand functions: Q= 25,800-800P + 4A+ 200 CP + 0.4DIPC P = the price per month of their service, in dollars, A = advertising expenditure per month, in dollars, CP = the price per month of the competitor's service, in dollars, DIPC = the disposable income per capita, in dollars, as measured by the U.S. Department of Commerce for that month. a) Estimate the consumption quantity Q if P = $30, A = $5000, CP = $25, and DIPC = $33,000 b) Using the demand curve, show what will happened to total quantity demanded if the disposable income increases? c) Describe at least two price factors and 2 non-price factors that affect the demand for goods and services. d) Describe and distinction between shift in demand curve and movement along demand curve
The following is the demand functions: Q= 25,800-800P + 4A+ 200 CP + 0.4DIPC P = the price per month of their service, in dollars, A = advertising expenditure per month, in dollars, CP = the price per month of the competitor's service, in dollars, DIPC = the disposable income per capita, in dollars, as measured by the U.S. Department of Commerce for that month. a) Estimate the consumption quantity Q if P = $30, A = $5000, CP = $25, and DIPC = $33,000 b) Using the demand curve, show what will happened to total quantity demanded if the disposable income increases? c) Describe at least two price factors and 2 non-price factors that affect the demand for goods and services. d) Describe and distinction between shift in demand curve and movement along demand curve
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The following is the demand functions:
Q= 25,800-800P + 4A+ 200 CP + 0.4DIPC
P = the price per month of their service, in dollars, A = advertising expenditure
per month, in dollars, CP = the price per month of the competitor's service, in
dollars, DIPC = the disposable income per capita, in dollars, as measured by the
U.S. Department of Commerce for that month.
a) Estimate the consumption quantity Q if P = $30, A = $5000, CP = $25, and
DIPC = $33,000
%3D
b) Using the demand curve, show what will happened to total quantity
demanded if the disposable income increases?
c) Describe at least two price factors and 2 non-price factors that affect the
demand for goods and services.
d) Describe and distinction between shift in demand curve and movement
along demand curve
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