Consider the Following Multiplicative Demand Function Where Q_D = Quantity $$Q _ { D } = 1.6 \mathrm { P } ^ { - 15 } \mathrm { Y } ^ { 2 }$$

question 18

Multiple Choice

Consider the following multiplicative demand function where Q_D = quantity demanded,P = selling price,and Y = disposable income: $$Q _ { D } = 1.6 \mathrm { P } ^ { - 15 } \mathrm { Y } ^ { 2 }$$ The coefficient of Y indicates that (all other things being held constant) :

• A) for a one percent increase in disposable income,quantity demanded would increase by .2 percent
• B) for a one unit increase in disposable income,quantity demanded would increase by .2 units
• C) for a one percent increase in disposable income quantity demanded would increase by .2 units
• D) for a one unit increase in disposable income,quantity demanded would increase by .2 percent
• E) none of the above

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Definitions:

Spermatogenesis

The process by which male primordial germ cells undergo mitosis and meiosis to form mature sperm cells.

Secondary Sexual Characteristic

Physical traits that are not directly involved in reproduction but distinguish the sexes of a species, such as body hair in humans or plumage in birds.

Hermaphroditism

Reproduction in which a single individual produces both eggs and sperm.

Rhythm Method

A method of contraception based on avoiding intercourse during the period of a woman's cycle when she is most likely to conceive.