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The Estimated Demand for a Good Is Q^=4,80016P0.65M1.5PR\hat { Q } = 4,800 - 16 P - 0.65 M - 1.5 P _ { R }

Question 11

Multiple Choice

The estimated demand for a good is Q^=4,80016P0.65M1.5PR\hat { Q } = 4,800 - 16 P - 0.65 M - 1.5 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 good is


A) an inferior good since the coefficient on PRP _ { R } is negative.
B) a normal good since the coefficient on PRP _ { R } is negative.
C) a normal good since the coefficient on M is greater than one (in absolute value) .
D) an inferior good since the coefficient on M is negative.
E) none of the above

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