Suppose the market demand curve for apples can be expressed as QD = 220 - 2P - Pb + 0.2Y, where QD is the quantity of apples demanded, P is the price of an apple, Pb is the price of a banana, and Y is the average annual household income in thousands of dollars. What is the change in the quantity demanded of apples if the income increases by $10,000?
A) 220 apples
B) 2 apples
C) 40 apples
D) Not enough information to answer the question.
B
You might also like to view...
The market system is also called the price system because
A) rising prices are the signal to producers to offer more of a particular good. B) people pay money in markets. C) everything has a price tag. D) inflation is a significant problem.
Diamonds are expensive because:
A. very few diamonds are discovered each year. B. the seller of most diamonds in the world restricts output. C. they are a symbol of luxury. D. they are a form of conspicuous consumption.
Efficient production means producing
a. less output when costs are high and more output when costs are low b. at the lowest possible cost regardless of the quantity of output c. at any point on the production possibilities curve d. no more than what society needs e. in excess of what society needs
The international agreement that was aimed specifically at ozone depletion is the
a. Kyoto Protocol b. Montreal Protocol c. Rio Declaration d. London Convention 1972