The demand for good X is estimated to be Qxd = 10, 000 ? 4PX + 5PY + 2M + AX, where PX is the price of X, PY is the price of good Y, M is income, and AX is the amount of advertising on X. Suppose the present price of good X is $50, PY = $100, M = $25,000, and AX = 1,000 units. Based on this information, good X is:
A. a Giffen good.
B. a normal good.
C. an inferior good.
D. a regular good.
Answer: B
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The government has decided to give every person in the U.S. a $5 coupon that they can use at the grocery store to purchase their choice of cheese. We would expect this policy to lead to
A) an increase in aggregate demand but not equivalent to the full impact of all of the coupons redeemed due to some direct expenditure offset. B) no increase in aggregate demand because there would be no direct expenditure offset. C) an increase in aggregate demand equivalent to the full impact of all of the coupons redeemable. D) no increase in aggregate demand due to the Ricardian equivalence theorem.
Because the consumer's budget is limited, purchase decisions among available goods must of necessity be interdependent
a. True b. False Indicate whether the statement is true or false
Who from among the following would be classified as employed?
A. Jack Little, a 21 year old new college graduate actively looking for his first job B. Brenda Smith, an 18 year old full-time college student C. Sarah Lopez, a retired public school teacher D. Mario Faubert, a NHL hockey player at home sick with the flu
The circular flow model shows that the goods and services produced by business firms are sold through:
A. money markets. B. resource markets. C. product markets. D. stock markets.