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

question 93

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,goods X and Y are:

• A) substitutes.
• B) complements.
• C) normal goods.
• D) inferior goods.

---

Definitions:

Probability

A measure of the likelihood of a specific event or outcome expressed as a ratio between 0 and 1.

Passengers

Individuals who travel in a vehicle but are not responsible for driving or navigating the vehicle.

Atlantic Ocean

The second-largest ocean body in the world, located between the Americas, Europe, and Africa.

Titanic

The British passenger liner that sank after hitting an iceberg on its maiden voyage in 1912, leading to significant loss of life.