Estimated Demand for a Good Is $\hat { Q } = 25 - 5 P + 0.32 M + 12 P _ { R }$

question 5

Multiple Choice

estimated demand for a good is $\hat { Q } = 25 - 5 P + 0.32 M + 12 P _ { R }$ where Q is the quantity demanded of the good,P is the price of the good,M is income,and $P _ { R }$ is the price of related good R.This good and the related good R are

• A)complements since the coefficient on M is positive.
• B)substitutes since the coefficient on M is positive.
• C)complements since the coefficient on \(P _ { R }\) is positive.
• D)substitutes since the coefficient on \(P _ { R }\) is positive.

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Definitions:

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