4. An economic consultant provides a firm's marketing manager with the following estimate of the demand function for the firm's product: Qx = 1240 – 3.13Px – 0.611P, + 2.01M + 0.30A, Px = the price of the firm's product per unit; Py = the price of another good per unit; M = money income for the average consumer, Ax = advertising costs for the firm's product. The demand function shown above indicates that: A. The firm's good (X) and the other good (Y) are substitutes and that X is an inferior good B. The firm's good (X) and the other good (Y) are complements and that X is an inferior good C. The firm's good (X) and the other good (Y) are substitutes and that X is a normal good D. The firm's good (X) and the other good (Y) are complements and that X is a normal good

4. An economic consultant provides a firm's marketing manager with the following estimate of the demand function for the firm's product: Qx = 1240 – 3.13Px – 0.611P, + 2.01M + 0.30A, Px = the price of the firm's product per unit; Py = the price of another good per unit; M = money income for the average consumer, Ax = advertising costs for the firm's product. The demand function shown above indicates that: A. The firm's good (X) and the other good (Y) are substitutes and that X is an inferior good B. The firm's good (X) and the other good (Y) are complements and that X is an inferior good C. The firm's good (X) and the other good (Y) are substitutes and that X is a normal good D. The firm's good (X) and the other good (Y) are complements and that X is a normal good

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

4. An economic consultant provides a firm's marketing manager
with the following estimate of the demand function for the firm's
product:
Qx = 1240 – 3.13Px - 0.611P, + 2.01M + 0.30AX
Px = the price of the firm's product per unit; Py = the price of
another good per unit; M = money income for the average
consumer; Ax = advertising costs for the firm's product.
The demand function shown above indicates that:
A. The firm's good (X) and the other good (Y) are substitutes and
that X is an inferior good
B. The firm's good (X) and the other good (Y) are complements
and that X is an inferior good
C. The firm's good (X) and the other good (Y) are substitutes and
that X is a normal good
D. The firm's good (X) and the other good (Y) are complements
and that X is a normal good

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