A.complements Since the Coefficient on M Is Positive

question 45

Multiple Choice

a.complements since the coefficient on M is positive.
b.substitutes since the coefficient on M is positive.
c.complements since the coefficient on is positive.
d.substitutes since the coefficient on is positive.
-estimated demand for a good is where Q is the quantity demanded of the good,P is the price of the good,M is income,and is the price of related good R.The coefficient on P

• A)violates the law of demand.
• B)is negative as dictated by the law of demand.
• C)should not be greater than one in absolute value).
• D)should have the same sign as the coefficient on .
• E)both c and d

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