A Simple Linear Demand Function May Be Stated as Q

question 44

Multiple Choice

A simple linear demand function may be stated as Q = a - bP + cI where Q is quantity demanded, P is the product price, and I is consumer income. To compute an appropriate value for c, we can use observed values for Q and I and then set the estimated income elasticity of demand equal to:

• A) c(I/Q).
• B) c(Q/I).
• C) -b(I/Q).
• D) Q/(cI).

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Definitions:

Poisoning the Well

A logical fallacy where adverse information about a target is preemptively presented to an audience, with the intention of discrediting or ridiculing everything that the target person is about to say.

Ad Hominem

A fallacy that involves attacking the person making an argument rather than the argument itself.

Fallacy

An erroneous argument or reasoning, often misleading or based on unsound logic.

Ad Hominem

A logical fallacy where an argument is rebutted by attacking the character, motive, or other attribute of the person making the argument rather than addressing the substance of the argument itself.