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Imagine that we have a market demand function given by P = 1010 ' .08Q, where P is the market price in the industry and Q is the total output of the good by producers in this particular industry. The demand curve is downward sloping, because consumers are willing to consume more of this good at lower prices but less of this good at higher prices (income and substitution effects)...
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Imagine that we have a market demand function given by P = 1010 ' .08Q, where P is the market price in the industry and Q is the total output of the good by producers in this particular industry. The demand curve is downward sloping, because consumers are willing to consume more of this good at lower prices but less of this good at higher prices (income and substitution effects)...
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