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(Solved): Suppose the demand function for fairy tales is given by P = 6 (1/3)Q, where P is price and Q is ...



Suppose the demand function for fairy tales is given by P = 6 – (1/3)Q, where P is price and Q is quantity demanded. Suppose that currently the price per fairy tale is $5 and the quantity demanded of fairy tales is 3. At that point on the demand function, by what percentage will a 1 percent increase in the price of fairy tales affect total expenditures on fairy tales?



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