A firm's demand equation is given by: Q = 60

Question

A firm's demand equation is given by: Q = 60 - 60P + 2Y, where Q is quantity, P is price, and Y is income. If price increases by $2 and income increases by $80, then quantity demanded will:
A) increase by 160 units.
B) increase by 80 units.
C) decrease by 120 units.
D) increase by 40 units.
E) decrease by 60 units.

Quizplus · Accepted Answer

The Answer of A firm's demand equation is given by: Q = 60 - 60P + 2Y, where Q is quantity, P is price, and Y is income. If price increases by $2 and income increases by $80, then quantity demanded will:
A) increase by 160 units.
B) increase by 80 units.
C) decrease by 120 units.
D) increase by 40 units.
E) decrease by 60 units.