An analyst for a shoe company estimates the demand for its shoes is Qx = 10...

Question

Question

An analyst for a shoe company estimates the demand for its shoes is Qx = 10 – 4Px+ 5Py – 3Ay. Then good Y is:

a. an inferior good

b. a normal good

c. a complementary good

d. a substitute good

business economics

Answer 1

Answer #1

Answer

Option d

d. a substitute good

Py is the price of good y and the demand for good x increases as the price of Y increases means the goods are consumed in substitute to each other.

Answer 2

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