The demand equation for the Widget Company has been estimated to be:
Q = 20,000 + 10 I - 50P + 20 PC
where Q = monthly number of widgets sold,I = average monthly income,P = price of widgets,and PC = average price of competing goods.
a.If next month's income is forecast to be 2,000,the price of competing goods is forecast to be $20,and the price of widgets will be set at $30,forecast sales.
b.What will sales be if the price is dropped to $20?
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