Assume the Demand Function for Good X Can Be Written

question 44

Multiple Choice

Assume the demand function for good X can be written as Qd = 80 - 3Px + 2Py + 10I, where Px = the price of X, Py = the price of good Y, and I = Consumer income. According to this equation:

• A) because the coefficient on Px is negative, X is an inferior good.
• B) X and Y are complements
• C) because the coefficient on income is positive, X is a giffen good.
• D) X and Y are substitutes.

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Definitions:

Trait Approach

An approach in psychology and leadership studies that suggests certain individual characteristics and qualities can make effective leaders.

Trait

A characteristic or quality that defines an individual and influences their behavior or attitudes.

Extraversion

A personality trait characterized by a tendency to be outgoing, sociable, and energetic, typically enjoying engagement in social settings and interactions.

Dominance

The exercise of power or influence over others to command, control, or prevail in a social or competitive setting.