The Estimated Demand for a Good Is $\hat { Q } = 4,800 - 16 P - 0.65 M - 1.5 P _ { R }$

question 64

Multiple Choice

The estimated demand for a good is $\hat { Q } = 4,800 - 16 P - 0.65 M - 1.5 P _ { R }$ 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.The good is

• A)an inferior good since the coefficient on \(P _ { R }\) is negative.
• B)a normal good since the coefficient on \(P _ { R }\) is negative.
• C)a normal good since the coefficient on M is greater than one (in absolute value).
• D)an inferior good since the coefficient on M is negative.
• E)none of the above

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