Suppose That the Demand Curves for Goods A,B,and C Have

question 46

Multiple Choice

Suppose that the demand curves for goods A,B,and C have the following functional forms:,where Q denotes quantity demanded and P denotes price: Q_A = 120 - 3.5 P_A - 6P_B
Q_B = 100 - 2P_B + 3P_C
Q_C = 1500 - 0.5P_C.
Based on these demand curves,which of the following pairs of goods are known to be complements?

• A)B and C
• B)A and C
• C)A and B
• D)A and C,and B and C
• E)none of the pairs are complements

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Definitions:

Price Control

Government policies or regulations that set or limit the price of certain goods and services in an attempt to control inflation and ensure affordability.

Steel Makers

Companies involved in the production of steel, an alloy of iron and carbon used widely in construction and manufacturing.

Attempted Monopolization

An action by a firm that involves anticompetitive conduct, the intent to gain monopoly power, and a “dangerous probability” of success in achieving monopoly power.

Antitrust Action

A lawsuit or legal move to challenge practices that restrain trade or competition in the market.