CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

Suppose X and Y are substitutes. This indicates that in the demand function for X, Qx = A + B x Px + C x I + D x Py, ______.
A. C > 0
B. B < 0
C. D > 0
Explanation: If Y's price rises, a consumer would tend to purchase much less of Y and switch to the less costly substitute (X).

User Contributed Comments 1

User Comment
Hamad333_1 why is B wrong?
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