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Question
The demand function of a product X is given as: Dx = 12 − 2Px, where Px stands for price. If there are 5,000 customers for the product, then market demand for the product at market price of ₹ 3 will be ______.
Options
40,000
30,000
20,000
16,000
MCQ
Fill in the Blanks
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Solution
The demand function of a product X is given as: Dx = 12 − 2Px, where Px stands for price. If there are 5,000 customers for the product, then market demand for the product at market price of ₹ 3 will be 40,000.
Explanation:
Each customer demands $$D_x=12-2(3)=6\text{ units}.$$ Market demand is $$6\times5{,}000=30{,}000\text{ units}.$$
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