2 Suppose that consumers demand for each of the

Last updated: 6/29/2023

2 Suppose that consumers demand for each of the differentiated goods is Qd 10 p p where Qa is the quantity of demand n is the number of differentiated goods p is the price of the differentiated good and p is the average price of differentiated goods The cost function to produce each of the differentiated good is C 10 Qs where C is the total cost and Q is the quantity of supply Answer the following questions a 8 points Calculate the equilibrium level of n and p b 8 points Suppoe the cost function is C 5 Q Should n increase or decrease Explain