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The estimated demand for a good is Q = 25 5 P + 0.32 M + 12 P R where Q is the quantity demanded
The estimated demand for a good is
Q = 25 5P + 0.32M + 12PR
where Q is the quantity demanded of the good, P is the price of the good, M is income, and PR is the price of related good R. The good is
- an inferior good since the coefficient on M is greater than one.
- a normal good since the coefficient on M is positive.
- None of the choices are correct.
- a normal good since the coefficient on PR is positive.
- an inferior good since the coefficient on PR is positive.
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Changing Resource Problems Of The World
Authors: Ronald G Ridker
1st Edition
131735494X, 9781317354949
