Question: Consider a market with many buyers, where the demand function is given by QD = 30010P. a.)How many units are demanded at a price of

Consider a market with many buyers, where the demand function is given by QD = 30010P.

  1. a.)How many units are demanded at a price of P =5? At a price of P =20?
  2. b.)Does the Law of Demand hold for this demand function? What mathematical sign in the demand function equation supports your answer?
  3. c.)Carefully graph the demand function. What is its slope?
  4. d.)What if the demand function in this question shifted to QD = 35010P? Carefully graph this new demand function. Is this a demand increase or decrease? What kind of demand parameter changes could bring about this shift? Give two examples and be specific (don't just say "change in the price of a related good.")

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