C. (5 points) The Creative Publishing Company (CPC) is a coupon book publisher with markets in...
C. (5 points) The Creative Publishing Company (CPC) is a coupon book publisher with markets in Several southeastern states. CPC coupon books are sold directly to the public, sold through religious and other charitable organizations, or given away as promotional items. Operating experience during the past year suggests the following demand function for CPC's coupon books. Q = 5,000 - 4,000(P) + 0.02(Pop) +0.25(M) + 1.5(A). In which P = $10, Pop = 1,000,000 persons, M = $60,000, and A = $10,000. a) Simplify and graph the demand function. b) On the same graph simplify and graph the demand function if advertising increases to A = $15,000. Draw an arrow illustrating the parameter shift.