The Estimated Demand for a Good Is $\hat { Q } = 4,800 - 16 P - 0.65 M - 1.5 P _ { R }$

question 24

Multiple Choice

The estimated demand for a good is $\hat { Q } = 4,800 - 16 P - 0.65 M - 1.5 P _ { R }$ where Q is the quantity demanded of the good,P is the price of the good,M is income,and $P _ { R }$ is the price of related good R.If the price of the good rises by $10,all else constant,the quantity demanded will ________ by ________ units.

• A)increase; 16 units
• B)decrease; 160 units
• C)decrease; 1.5 units
• D)increase; 150 units

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Definitions:

Chain Of Distribution

The successive stages and parties involved in the distribution of a product from producer to ultimate consumer.

Implied Warranty

An unstated guarantee that a product will meet a minimum level of quality and functionality, which is presumed to exist by law.

Operation Of Law

A process by which rights or liabilities are automatically transferred without the need for an agreement or contract, usually by statute.

Implied Warranty

A legal presumption that a product will perform as expected based on its intended use, even if not explicitly stated.