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.This good and the related good R are
A) eliminates the problem of response bias.
B) reflects the characteristics of the population.
C) is frequently a random sample.
D) both b and c
E) all of the above

Question

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.This good and the related good R are
A) eliminates the problem of response bias. 
B) reflects the characteristics of the population. 
C) is frequently a random sample. 
D) both b and c 
E) all of the above

Quizplus · Accepted Answer

The estimated demand equation includes both the price of the good and the price of a related good, indicating that the demand for this good is influenced by the availability and price of another good in the market. This suggests that the demand equation reflects the characteristics of the population, as it takes into account the behavior of consumers in relation to the availability and price of related goods. Additionally, the demand equation is often estimated using a random sample of the population, further supporting the idea that it reflects the characteristics of the population. Therefore, the best answer is D, as it includes both options that are supported by the information given.

Estimated Demand for a Good Is Where Q Is