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.
-For the general linear demand function given above

Question

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.
-For the general linear demand function given above

Quizplus · Accepted Answer

The coefficients in the demand function represent the change in quantity demanded with respect to changes in each variable, holding other factors constant. A) $\Delta Q _ { d } / \Delta M = c$ is correct because c is the coefficient of M. B) d is the effect of a change in the price of the related good, as it is the coefficient of $P _ { R }$. C) b is the effect of a change in the price of the good itself, as it is the coefficient of P.

The General Linear Demand Function Below Is Used to Answer Qd=a+bP+cM+dPRQ _ { d } = a + b P + c M + d P _ { R }Qd​=a+bP+cM+dPR​

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