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Answer to Question #70203 in Macroeconomics for Leevin
Question #70203
The CEO claimed he could that he can set any price he wishes and sel as many of his product he wants at that price. is this correct? motivate your anser.
Expert's answer
It is not correct, since it does not respond to the law of demand, which claims that demand for a product depends on its price. A higher price is going to decrease demand for a product. A final quantity of a sold good depends on demand from customers. That is why the CEO should also account this factor.
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