Refer to the Following:
the Estimated Demand for a Good $$\hat { Q } = 25 - 5 P + 0.32 M + 12 P _ { R }$$

question 17

Multiple Choice

Refer to the following:
The 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.
-The coefficient on P

• A) does not have the expected sign.
• B) is negative as expected.
• C) should have the same sign as the coefficient on \(P _ { R }\) .
• D) should not be greater than one (in absolute value).
• E) both b and d

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