A Firm Sells Two Goods (X and Y)that Are Related

question 19

Multiple Choice

A firm sells two goods (X and Y) that are related in consumption.The estimated demand and cost conditions are: $$\begin{array} { l } P _ { X } = 20 - 0.1 Q _ { X } - 0.05 Q _ { y } \\P _ { y } = 70 - 0.3 Q _ { y } - 0.1 Q _ { X } \\M C _ { X } = 1 + 0.1 Q _ { X } \\M C _ { y } = 2 + 0.25 Q _ { y }\end{array}$$ Goods X and Y are

• A)complement
• B)substitutes
• C)independent
• D)normal
• E)inferior

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Definitions:

Acceptance

The act of receiving or consenting to something offered or proposed.

Caution Signals

Indicators or signs, either verbal or non-verbal, that suggest potential issues, objections, or resistance in a sales context.

Blocked Communication

A situation where communication is hindered or made ineffective due to barriers such as language, cultural differences, or interpersonal conflicts.

Buyer Acceptance

The stage at which a potential buyer agrees or decides to purchase a product or service.