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:

Acetylcholine

A neurotransmitter important for learning and memory, also involved in muscle activation.

GABA

Gamma-aminobutyric acid, a neurotransmitter in the brain that plays a key role in reducing neuronal excitability and is involved in regulating anxiety.

Neurotransmitters

Chemical messengers that transmit signals across a chemical synapse, from one neuron to another target neuron.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing and sending out nerve signals.