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| 1.The market for radios consists of 100 consumers, each of whom has the demand function:QDradio = 4 ? 0.4 Pradio + 0.0025 Income + 0.25 Pnewspaper ? 0.005 PbatteriesAt current average prices, a radio costs £10, a newspaper costs £1, and batteries cost £2. Average income is £1,000. The market demand curve for radios is most accurately described as: A:A:16.85 ? 0.025 QDradio. B:B:400 ? 40 Pradio + 0.25 Income + 25 Pnewspaper ? 0.5 Pbatteries. C:C:674 ? 40 Pradio. |
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