Assume the Demand Function for Skin Care Products Is Given

question 17

Multiple Choice

Assume the demand function for skin care products is given by Q = 1,000 - 20 P + 5I.If P = $25 and I = $1,000 currently,then

• A)skin care products are normal goods.
• B)the elasticity of demand is equal to 11.
• C)skin care products are inferior goods.
• D)the elasticity of demand is equal to 10.

---

Definitions:

Demand For Labor

The total amount of labor that employers are willing and able to hire at a given wage rate in an economy.

MRP Schedule

An MRP (Marginal Revenue Product) schedule outlines how a change in the quantity of input affects the revenue from the sale of additional output.

Real Wages

Wages adjusted for inflation, representing the purchasing power of income earned from work.

Legal Minimum Wage

The lowest hourly, daily, or monthly remuneration that employers are legally allowed to pay their workers.