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A major PC producer lowers the price of its desktop PC from $1,000 to $800. The...

A major PC producer lowers the price of its desktop PC from $1,000 to $800. The sale of desktops increases by 25 percent. The sales manager notices that sales of the company’s laser printers increase by 15 percent. c. Was the new policy beneficial for increasing the revenues of the producer? Explain. d. If you were to estimate a demand equation for desktop computers, which variables would you choose as explanatory variables?

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