Qh = 60,000 - 40 Ph + 20Pc + 5H + .10Ih + .0001Ah Qh: Annual Sales Ph: Price of
ID: 2440179 • Letter: Q
Question
Qh = 60,000 - 40 Ph + 20Pc + 5H + .10Ih + .0001Ah
Qh: Annual Sales
Ph: Price of deluxe model
Pc: price of competing-brand oven
H: Number of two-income households (in millions) in this income bracket
Ih: Average annual income of household in this bracket
Ah: Annual Dollar expenditures on advertising for the high priced model
* Please list which variable *
10. A change in the quantity demanded of CTI ovens can only result from a change in which variable? Note: this is not asking what variable(s) will cause a "change in demand for CTI ovens". A change in quantity demand will happen if the price of the CTI Ovens were to increase. |Explanation / Answer
Change in quantity demanded can result from a change in price of the good itself. Other variables can cause change in demand but not change in quantity demanded.
Ph is the variable which can cause change in quantity demanded of CTI ovens.