Question: Suppose the following demand exists for iPhone apps: (a) At $9, what quantity is demanded? (b) If the price drops to $6, what quantity is

Suppose the following demand exists for iPhone apps:

(a) At $9, what quantity is demanded?
(b) If the price drops to $6, what quantity is demanded?
(c) Is demand elastic or inelastic in that price range?
(d) If advertising convinces people to demand 3 million more apps at every price, how many apps will be demanded at a price of $9?
(e) Graph the above answers, using point A for (a), point B for (b), and point C for (d).

Price 6 5 $10 9 4 3 4 5 6 Quantity demanded 2 3 (millions)

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