Assume the Demand Function for Good X Can Be Written

question 81

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)a rise in the price of Y would cause the demand for X to decrease.
• B)X and Y are complements
• C)X is an inferior good.
• D)X and Y are substitutes.

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Definitions:

Affect

Refers to the experience of feeling or emotion, an aspect of consciousness that involves subjective feelings and moods.

Cognition

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.

Self-Monitor

The act of observing and regulating one's own behavior in social situations to fit into the expected norms or to achieve personal goals.

Nonreactive

A state or characteristic of not responding to stimuli or environmental factors.