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:

Revenue Functions

Mathematical models that calculate the total revenue generated by selling a certain number of products or services.

Maximum Profit

The highest potential financial gain that can be achieved from an investment or business venture.

Candlestick Chart

A chart, like a stock chart, but with a top line that indicates the high price, and a low line that indicates the low price for a given period; the rectangular region, known as the real body, is displayed in two different colors; the green candlestick indicates that the closing price is greater than the opening price and the red candlestick indicates the closing price is less than the opening price.

Real Body

In candlestick charting in finance, the wide part of a candle, showing the difference between the opening and closing prices.