Consider the following demand equation for bananas: QD = 1,000 - 50 P - 0.2 Y + 15 Ps, where P is the price of bananas, Y is the monthly income, and Ps is the price of strawberries. According to this equation, a $1 increase in monthly income will cause a in the quantity demanded for bananas, holding the other variables constant. 0.2 unit increase 5 unit increase O 5 unit decrease 0.2 unit decrease

Consider the following demand equation for bananas: QD = 1,000 - 50 P - 0.2 Y + 15 Ps, where P is the price of bananas, Y is the monthly income, and Ps is the price of strawberries. According to this equation, a $1 increase in monthly income will cause a in the quantity demanded for bananas, holding the other variables constant. 0.2 unit increase 5 unit increase O 5 unit decrease 0.2 unit decrease

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 11RQ: As a general rule, is it safe to assume that a change in the price of a good will always have its...

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