Suppose That a Retailer Sells F(p, A) Units of an Item

question 79

Multiple Choice

Suppose that a retailer sells f(p, a) units of an item, where p is the price per unit of the item and a is the amount of money spent on advertising that item. Which of the following indicates that as the amount spent on advertising is decreased, demand for the item also decreases?

• A) \(\frac { \partial f } { \partial a }\) (50, 75) = -10
• B) \(\frac { \partial f } { \partial p }\) (50, 25) = -1
• C) \(\frac { \partial f } { \partial p }\) (50, -1) = -5
• D) \(\frac { \partial f } { \partial a }\) (50, 25) = 10

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Definitions:

Unemployment

The condition of being without a job despite actively looking for work.

Aggregate-Demand Curve

A curve that shows the quantity of goods and services that households, firms, the government, and customers abroad want to buy at each price level

Trade-Off

A situation that involves losing one quality or aspect of something in return for gaining another quality or aspect.

Inflation And Unemployment

Economic phenomena, with inflation being the rate at which the general level of prices for goods and services is rising, and unemployment representing the portion of the workforce that is not currently employed but actively seeking employment.