Given the estimated demand function Equation 2.2 for avocados, Q = 104 40p + 20pt +

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Given the estimated demand function Equation 2.2 for avocados, Q = 104 – 40p + 20pt + 0.01Y, use algebra (or calculus) to show how the demand curve shifts as per capita income, Y, increases by $ 1,000 a year. Illustrate this shift in a diagram.

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Managerial Economics and Strategy

ISBN: 978-0321566447

1st edition

Authors: Jeffrey M. Perloff, James A. Brander

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