mgr econ quiz 8 - D Equilibrium price would fall and the...

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Question 27 0 out of 3 points Consider the following generalized linear demand function: Qd = a + bP + cM + dPr Where Qd = quantity demanded, P = the price of the good, M = household income, Pr = the price of a good related in consumption. If c = -0.05 and d = 3.2, the good is Correct Answer: E. both B and C of the above are true. Question 28 3 out of 3 points If the market for a certain product experiences an increase in supply and a decrease in demand, which of the following results is expected to occur? Selected Answer:
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Unformatted text preview: D. Equilibrium price would fall, and the equilibrium quantity could rise or fall. Correct Answer: D. Equilibrium price would fall, and the equilibrium quantity could rise or fall. Question 29 3 out of 3 points Perfume industry statistics show that over the past five years, the umber of bottles of perfume sold decreased by 30%, but the dollar amount spend by consumers was unchanged. This means that Selected Answer: D. demand was unitary elastic. Correct Answer: D. demand was unitary elastic....
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This note was uploaded on 04/14/2010 for the course ECONOMICS 2345 taught by Professor Jamison during the Spring '10 term at York University.

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mgr econ quiz 8 - D Equilibrium price would fall and the...

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