Question: Try new values in the price response functions according to this information: (a) Slope equal to 1,500. (b) Elasticity 0.5 and 0.1. (c) Change b

Try new values in the price– response functions according to this information:

(a) Slope equal to −1,500.

(b) Elasticity −0.5 and −0.1.

(c) Change b to 2.5 and 3.

(d) Change a to 5 and b to −0.05.

Comment on all the changes associated with implementing the new values. How do these affect the various price– response functions? Interpret the results using your knowledge within this field.

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