. Demand for good Q is estimated to be Q = 14 - P, where P is price.  If the prices rises from P = $3 to P = $6, then the lost revenue due to the quantity effect is b. A firm selling a product Q faces a demand where Q = 24 - P, where P is price.  If the firm lowers the price from P = $20 to P = $16, then the lost revenue due to the price effect is

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
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Chapter7: Consumer Choice And Elasticity
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Problem 13CQ: Suppose Erin, the owner-manager of a local hotel projects the following demand for her rooms: a....
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a. Demand for good Q is estimated to be Q = 14 - P, where P is price.  If the prices rises from P = $3 to P = $6, then the lost revenue due to the quantity effect is

b. A firm selling a product Q faces a demand where Q = 24 - P, where P is price.  If the firm lowers the price from P = $20 to P = $16, then the lost revenue due to the price effect is

 
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