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

question 44

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 - 3.5P_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 substitutes?

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

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Definitions:

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An incentive plan that sets rates based on the completion of a job in a predetermined standard time.

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