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

question 73

Multiple Choice

Suppose the demand curves for goods A,B,and C have the following functional forms,where Q denotes quantity demanded,P denotes price,and M denotes income: Q_A = 120 - 3.5P_A - 6P_B + 14M
Q_B = 100 - 2P_B + 3P_C + 1.1M
Q_C = 1500 - 0.5P_C - 300M.
Based on these demand curves,which of the following goods are known to be inferior goods?

• A)A
• B)B
• C)C
• D)A and B only
• E)A,B and C

---

Definitions:

Conical

Conical describes a shape or object that narrows smoothly from a broad base to a point, resembling a cone.

Cylindrical

Having the shape of a cylinder, characterized by a circular cross section and straight sides.

Domical

Shaped like a dome, typically referring to rounded, mound-like geological structures.

Solidified Lava

Lava that has cooled and hardened after erupting from a volcano, forming igneous rock.