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

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Definitions:

Agriculture

The act of working the land, growing food plants, and breeding animals for human needs and dietary purposes.

Pollution

The introduction of harmful substances or products into the environment, causing adverse effects on living organisms and ecological systems.

Modern Agricultural Practices

These practices involve the use of technology, chemical inputs, and advanced breeding techniques to increase crop yield and farming efficiency.

Soil Erosion

The removal of topsoil by wind, water, or other natural agents, leading to the degradation of land.