RKT corporation is a publisher of Economics books. The demand function for its books is given by the equation Qx = 12000 - 5000 Px + 5y + 500 Pc where Px is the price charged for RKT's boks, y is income per capita and Pi is the price of books from competing publisher.
i)Determine what effect a price increase would hence on total revenue
ii)Evaluate how sale of books would change during a period rising incomes
iii)Assess the probable impact if competing publishers raise their prices