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Basic Question 1 of 3

In the demand function, Py refers to the price of another good, Y. This good can be a ______.

I. substitute
II. complement
III. inferior good

User Contributed Comments 2

User Comment
VT04 If the good was an inferior good, the demand function would be negative (-Py)
yesitan if the good is complement, shouldnt it be -
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes

Learning Outcome Statements

calculate and interpret price, income, and cross-price elasticities of demand and describe factors that affect each measure;

CFA® 2024 Level I Curriculum, Volume 2, Module 8.