The General Linear Demand Function Below Is Used to Answer $Q _ { d } = a + b P + c M + d P _ { R }$

question 30

Multiple Choice

The general linear demand function below is used to answer questions :
$Q _ { d } = a + b P + c M + d P _ { R }$
where Q_d = quantity demanded, P = the price of the good, M = income,
$P _ { R }$ = the price of a good related in consumption.
-The law of demand requires that

• A) a < 0.
• B) b < 0.
• C) P < 0.
• D) a < 0 and b < 0.
• E) b < 0 and P < 0.

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