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

question 151

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 normal goods?

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

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