QB = 3 40 — 6Рв + 0.9Y — 2PA + 1.4Pc + 13QUB Where QB is the demand for good B; Pg is its price; Y is consumer income; PĄ and Pc are the prices of other goods and QUB is the quality of good B. Assume that Pg = 3; Y = 1000; PA = 5; Pc = 5; QUB = 6. %3D Which of the following correctly provides the relevant elasticities of demand and the correct explanation? YED is income elasticity of demand; CEDBC is cross price elasticity of demand between goods B and C and QUEDB is the quality elasticity of demand for good B. (а) YED — and C are complements; there is a positive impact on demand for good B from quality improvements. (b) YED = 0.9; CEDbc C are substitutes; there is a positive impact on demand for good B from quality 8.49; CEDBC = 0.066; QUEDB = 0.736. Good B is a normal good; goods B 0.094; QuEDB = 13. Good B is a normal good; goods B and improvements. (c) YED = 8.49; CEDBC = 0.066; QUEDB and C are substitutes; there is a positive impact on demand for good B from quality improvements. (d) YED = C are substitutes; there is a positive impact on demand for good B from quality 0.736. Good B is a normal good; goods B 0.9; CEDBC 0.094; QUEDB = 13. Good B is a normal good; goods B and improvements.
QB = 3 40 — 6Рв + 0.9Y — 2PA + 1.4Pc + 13QUB Where QB is the demand for good B; Pg is its price; Y is consumer income; PĄ and Pc are the prices of other goods and QUB is the quality of good B. Assume that Pg = 3; Y = 1000; PA = 5; Pc = 5; QUB = 6. %3D Which of the following correctly provides the relevant elasticities of demand and the correct explanation? YED is income elasticity of demand; CEDBC is cross price elasticity of demand between goods B and C and QUEDB is the quality elasticity of demand for good B. (а) YED — and C are complements; there is a positive impact on demand for good B from quality improvements. (b) YED = 0.9; CEDbc C are substitutes; there is a positive impact on demand for good B from quality 8.49; CEDBC = 0.066; QUEDB = 0.736. Good B is a normal good; goods B 0.094; QuEDB = 13. Good B is a normal good; goods B and improvements. (c) YED = 8.49; CEDBC = 0.066; QUEDB and C are substitutes; there is a positive impact on demand for good B from quality improvements. (d) YED = C are substitutes; there is a positive impact on demand for good B from quality 0.736. Good B is a normal good; goods B 0.9; CEDBC 0.094; QUEDB = 13. Good B is a normal good; goods B and improvements.
A First Course in Probability (10th Edition)
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Transcribed Image Text:QB =
3 40 — 6Рв + 0.9Y — 2PA + 1.4Рс + 13QUB
|
Where QB is the demand for good B; Pg is its price; Y is consumer income; Pa and Pc are
the prices of other goods and QUB is the quality of good B. Assume that Pg = 3; Y =
1000; PA = 5; Pc = 5; QUB = 6.
%3D
Which of the following correctly provides the relevant elasticities of demand and the
correct explanation? YED is income elasticity of demand; CEDBC is cross price elasticity
of demand between goods B and C and QUEDB is the quality elasticity of demand for
good B.
(а) YED —
and C are complements; there is a positive impact on demand for good B from
quality improvements.
(b) YED = 0.9; CEDbc
C are substitutes; there is a positive impact on demand for good B from quality
8.49; CEDBC = 0.066; QUEDB = 0.736. Good B is a normal good; goods B
0.094; QuEDB
= 13. Good B is a normal good; goods B and
improvements.
(c) YED = 8.49; CEDBC = 0.066; QUEDB
and Care substitutes; there is a positive impact on demand for good B from quality
improvements.
(d) YED =
C are substitutes; there is a positive impact on demand for good B from quality
0.736. Good B is a normal good; goods B
0.9; CEDBC
0.094; QUEDB
= 13. Good B is a normal good; goods B and
improvements.
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