Question 31
HardOriginal questionDemand for a good is Qd = 50 − 2P + 0.1Y, where Y is income. If income rises from ₹200 to ₹300, at a price of ₹10 the quantity demanded
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
At Y = 200: 50 − 20 + 20 = 50. At Y = 300: 50 − 20 + 30 = 60.
Demand rises with income, so this is a normal good and its curve shifts right.
- Concept
- Income in a demand function
- Typical timeTypical
- 100 s
- Your timeYours
- —
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