The Demand for Good X Is Estimated to Be Q_x^d

question 94

Multiple Choice

The demand for good X is estimated to be Q_x^d = 10,000 − 4P_X + 5P_Y + 2M + A_X, where P_X is the price of X,P_Y is the price of good Y,M is income,and A_X is the amount of advertising on X.Suppose the present price of good X is $50,P_Y = $100,M = $25,000,and A_X = 1,000 units.Based on this information,the cross-price elasticity between goods X and Y is:

• A) 0.008.
• B) −0.08.
• C) −0.8.
• D) −8.

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Definitions:

Strike

Withdrawal of services by employees.

Union Shop

A workplace where employees must join the union within a certain timeframe after being hired.

Lockout

An action taken by employers to prevent employees from working during a labor dispute, as a measure to pressure the union into concessions.

Picketing

Job action during a legal strike when employees circulate at the periphery of the job site to persuade others not to do business with the struck employer.