Suppose That the Demand Curves for Goods A, B, and C

question 7

Multiple Choice

Suppose that the demand curves for goods A, B, and C have the following functional forms:, where Q denotes quantity demanded and P denotes price:
QA = 120 - 3.5 PA - 6PB QB = 100 - 2PB + 3PC QC = 1500 - 0.5PC.
Based on these demand curves, which of the following pairs of goods are known to be complements?

• A) A and C
• B) B and C
• C) A and B
• D) A and C, and B and C
• E) None of the pairs are complements.

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