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Unit 3 Assignment Economics Applications

Unit 3 Assignment Economics Applications

Q What variables other than price and advertising are likely to affect the quantity demanded of a product?

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According to the law of demand, keeping other factors unchanged, when the price of a commodity increases the quantity demanded of that commodity decreases and when price decreases quantity demanded increases. Now, in nominal terms, we know that price is the major determinant that affects the quantity but sometimes it’s the advertising which causes some small