The Estimated Demand for a Good X Is $\hat { Q } = 70 - 3.5 P - 0.6 M + 4 P _ { Z }$

question 49

Multiple Choice

The estimated demand for a good X is $\hat { Q } = 70 - 3.5 P - 0.6 M + 4 P _ { Z }$ ,where $\hat { Q }$ = units of the good,P = price of the good,M = income,and $P _ { z }$ = price of related good Z.All parameter estimates are statistically significant.Which of the following statements is correct?

• A)X is a normal good.
• B)X is an inferior good.
• C)X and Z are substitutes.
• D)X and Z are complements.
• E)both b and c

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Definitions:

Biological Drives

Innate impulses that drive behavior and ensure survival, such as hunger, thirst, and the need for sleep.

External Rewards

Benefits or incentives provided by an external source, such as money, praise, or awards, that motivate behavior.

Biological Drives

Innate impulses that direct or motivate behavior, such as hunger, thirst, and the drive for sex.

Mastery Goals

Objectives focused on developing competence or mastering a skill rather than on comparing oneself to others.