Use the following general linear demand function below: Qd = a + bP + cM + dPRwhereQd = quantity demanded, P = the price of the good, M = income, PR = the price of a good related in consumption.For the general linear demand function given above
A. d is the effect on the quantity demanded of the good of a one-dollar change in the price of the related good, all other things constant.
B. b is the effect on the quantity demanded of the good of a one-dollar change in the price of the good, all other things constant.
C. ?Qd / ?M = c.
D. all of the above
Answer: D
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In the above figure, the most efficient way to produce 15 units is to hire
A) 2 workers. B) 3 workers. C) 4 workers. D) 5 workers.
Let D= demand, S = supply, P = equilibrium price, and Q= equilibrium quantity. What happens in the market for tropical hardwood trees if the governments restrict the amount of forest lands that can be logged?
A) D decreases, S no change, P and Q decrease. B) S decreases, D no change, P increases, Q decreases. C) D and S decrease, P and Q increase. D) D no change, S decreases, P increases, Q increases.