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

question 66

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: QA = 120 - 3.5PA - 6PB + 14M QB = 100 - 2PB + 3PC + 1.1M QC = 1500 - 0.5PC - 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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Definitions:

Edward Thorndike

An American psychologist who developed the law of effect and conducted significant work in the area of animal learning and behavior.

David Premack

An American psychologist known for his work in the field of animal cognition and for developing the Premack Principle, which involves using a preferred activity to reinforce a less preferred activity.

Visceral Responses

Automatic, instinctive bodily responses to stimuli, typically related to emotions and survival such as fear or hunger, mediated by the autonomic nervous system.

Skeletal Responses

Skeletal responses refer to reactions or movements of the skeletal muscles, which can be voluntary or involuntary, often as a response to various stimuli.