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Estimated Demand for a Good Is Q^=255P+0.32M+12PR\hat { Q } = 25 - 5 P + 0.32 M + 12 P _ { R }

Question 16

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estimated demand for a good is Q^=255P+0.32M+12PR\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 PRP _ { 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 PRP _ { R } .
D) should not be greater than one (in absolute value) .
E) both b and d

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