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Suppose That a Retailer Sells F(p, A) Units of an Item

Question 79

Multiple Choice

Suppose that a retailer sells f(p, a) units of an item, where p is the price per unit of the item and a is the amount of money spent on advertising that item. Which of the following indicates that as the amount spent on advertising is decreased, demand for the item also decreases?


A) fa\frac { \partial f } { \partial a } (50, 75) = -10
B) fp\frac { \partial f } { \partial p } (50, 25) = -1
C) fp\frac { \partial f } { \partial p } (50, -1) = -5
D) fa\frac { \partial f } { \partial a } (50, 25) = 10

Correct Answer:

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