Consider the market for a particular brand of watch, illustrated in the figure t
ID: 1137550 • Letter: C
Question
Consider the market for a particular brand of watch, illustrated in the figure to the right. Suppose there are network externalities in this market such that the quantity of the good demanded falls in response to the growth of purchases by other individuals (as indicated by the demand curve "Demand" in the figure). Suppose that the price is initially $12,000 where the quantity demanded is 80 watches per month If the price of this brand of watch falls to $6,000, demand will increase to watches. (Enter your response using an integer.) 40 80 100 120 140 160 Demand 0 20 40 60 80 100 120 140 160 180 200 220 Watches (per month)Explanation / Answer
Ans: 140
Explanation:
It is seen from the figure that at price of $6,000, demand is 140 watches.