Question 40, I got B as my ans but the correct one is A. Can someone explain for

Question

Question 40, I got B as my ans but the correct one is A. Can someone explain for me? Thank you

Scenario 2 The demand for microwave ovens is given by Qd 10000 + 20.0N + 1.6Pc - 4.7Pm where: N- income measured in thousands of dollars Pc price of convection ovens Pm- price of microwave ovens 38. Refer to Scenario 2. Are convection ovens substitutes or complements to microwaves? If prices of microwaves increase, then microwaves are an inferior good. Convection oven prices have no relationship with microwave demand. Complements; the more they cost, the lower the demand for microwaves Substitutes; the less they cost, the lower the demand for microwaves a. b. c. d. 39. Refer to Scenario 2. An increase in income will a. b. c. d. Increase the demand for microwaves Decrease the demand for microwaves Increase the quantity demanded of microwaves. Both a and c above 40, $120,000, the price of convection ovens = $1600 and the price of Refer to Scenario 2. Suppose that Income microwaves-$900. The quantity demanded of microwaves will be: a. 10730 b. 2,408,330 c. 14070 d. none of the above

Explanation / Answer

40.

Put the values in the question

Q = 10000 +20N +1.6Pc - 4.7Pm

Q = 10000 + 20*120000 + 1.6*1600 -4.7*900

Q = 2408330

The correct answer is b. I think there is some mistake in the answer.

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