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Summary QuestionIf a profit equation changes from $3B + $5C to $2B + $6C, then the demand for Unit $7.99
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Summary QuestionIf a profit equation changes from $3B + $5C to $2B + $6C, then the demand for Unit
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If a profit equation changes fro1QuestionIf a profit equation changes from $3B + $5C to $2B + $6C, then the demand for Unit B is increased escalated DoOC changed decreasedAnswer & ExplanationTo determine how the demand for Unit B is affected by the change in the profit equation, we need to analyze ...

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  • October 6, 2024
  • 2
  • 2024/2025
  • Summary

Subjects

  • it b
  • if a profit equation changes fro1questionif a prof
  • then the demand for unit b is increased escalated
  • we need to analyze how its coefficient changesin
  • the profit equation is given as 3b 5c after

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Question


If a profit equation changes from $3B + $5C to $2B + $6C, then the demand for

Unit B is increased escalated DoOC changed decreased




Answer & Explanation


To determine how the demand for Unit B is affected by the change in the profit

equation, we need to analyze how its coefficient changes.


Initially, the profit equation is given as: [ 3B + 5C ]


After the change, it becomes: [ 2B + 6C ]


The coefficient of ( B ) changes from 3 to 2. This indicates that each unit of

( B ) contributes less to the overall profit than before.


In economic terms, if a product's contribution to profit decreases (assuming all

else remains constant), it often suggests that either:


1. The cost associated with producing or selling ( B ) has increased.

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