Suppose the demand function for cable TV service is given by QCTV = 15 - 0.25 × PCTV + 0.0005 × M + 0.3 × PSTV, QCTV is the quantity of cable TV demanded (thousands of households), PCTV is the price of cable TV, M is income and PSTV is the price of satellite TV service. Suppose consumers' income is $50,000 and the price of satellite TV service is $90. At what price would the demand for cable TV services be equal to 55,000 households?
A. $67
B. $48
C. $12
D. There is not enough information to answer the question.
B. $48
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____ mean that the costs involved cannot be recouped for a considerable period of time.
A. Sunk costs B. Opportunity costs C. Overheads D. Restructuring costs
Which of the following is not a reason for the aggregate demand curve to be downward sloping?
A. Foreign purchases effect B. Diminishing marginal utility C. Interest rate effect D. Real balance effect
The following table provides data for an economy in a certain year.Consumption expenditures50Imports40Government purchases of goods and services20Construction of new homes and apartments30Sales of existing homes and apartments40Exports50Government payments to retirees10Household purchases of durable goods20Beginning-of-year inventory10End-of-year inventory20Business fixed investment30Given the data in the table, compute the investment component of GDP.
A. 40 B. 60 C. 30 D. 70
Suppose output is $440 billion, government purchases are $40 billion, desired consumption is $320 billion, and net exports are $35 billion. Absorption is equal to
A. $435 billion. B. $420 billion. C. $405 billion. D. $440 billion.