D. Suppose the demand for X is given by Q, = 100 – 2Px+ 4Py + 10M + 2A, where Px represents the price of good X, Py is the price of good Y, M is income, and A is the amount of advertising on good X. If advertising on good X increases by $10,000, then the demand for X will: A. decrease by $20,000. B. decrease by $100,000. C. increase by $100,000. D. increase by $20,000.
D. Suppose the demand for X is given by Q, = 100 – 2Px+ 4Py + 10M + 2A, where Px represents the price of good X, Py is the price of good Y, M is income, and A is the amount of advertising on good X. If advertising on good X increases by $10,000, then the demand for X will: A. decrease by $20,000. B. decrease by $100,000. C. increase by $100,000. D. increase by $20,000.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Can you explain to me why the answer given is D?
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