Suppose the Demand for Good X Is Given by Q^d_x

question 120

Multiple Choice

Suppose the demand for good X is given by Q^d_x = 10 + a_xP_x + a_yP_y + a_MM.If a_y is positive,then:

• A) goods y and x are complements.
• B) goods y and x are inferior goods.
• C) goods y and x are normal goods.
• D) goods y and x are substitutes.

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Definitions:

Positively Skewed

Refers to a distribution of data where the tail on the right side of the distribution is longer or fatter than the left side, indicating that the majority of the data points are concentrated on the left.

Degrees of Freedom

The number of independent pieces of information available to estimate another piece of information or the parameter in a model.

Number

An arithmetic value that represents a particular quantity and is used in counting and making calculations.

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution or to a mechanism, minus the number of parameters that constrain these values.