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Suppose That the Demand Curves for Goods A, B, and C

Question 21

Multiple Choice

Suppose that the demand curves for goods A, B, and C have the following functional forms:, where Q denotes quantity demanded and P denotes price:
QA = 120 - 3.5PA - 6PB QB = 100 - 2PB + 3PC QC = 1500 - 0.5PC.
Based on these demand curves, which of the following pairs of goods are known to be substitutes?


A) A and B
B) A and C, and B and C
C) B and C
D) A and C
E) None of the pairs are substitutes.

Correct Answer:

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