The Demand for Fax Machines Has Been Estimated to Be

question 21

Multiple Choice

The demand for fax machines has been estimated to be Q = 1,000 - P + 40L,where P is the price of the machines and L is the average cost of a 10-minute midday call from Los Angeles to New York.At a fax machine price of $400 and a phone call cost of $10,the cross-price elasticity of demand for fax machines with respect to the price of phone service is:

• A) 0.4.
• B) 2.5.
• C) -0.25.
• D) 4.0.
• E) 4.25.

---

Definitions:

Generalized Anxiety Disorder

A mental disorder characterized by excessive, uncontrollable worry about daily activities, often accompanied by physical symptoms.

Categorical Information

refers to data or information that is divided into specific categories or groups based on shared characteristics.

Dimensional Information

Data or knowledge that can be measured along different dimensions or scales, often used in assessing or categorizing phenomena.

Validity

The extent to which a concept, conclusion or measurement is well-founded and corresponds accurately to the real world.