the following general linear demand relation: $Q _ { d } = 680 - 9 P + 0.006 M - 4 P _ { R }$ where M is income and $P _ { R }$ is the price of a related good,R.From this relation it is apparent that the good is:

Question

Quizplus · Accepted Answer

In the given demand equation, the coefficient of income (M) is positive (0.006), indicating that the good is a normal good. The coefficient of the price of related good (PR) is negative (-4), indicating that the good is a complement for good R. Therefore, the answer is E, both c and d.

The Following General Linear Demand Relation Qd=680−9P+0.006M−4PRQ _ { d } = 680 - 9 P + 0.006 M - 4 P _ { R }Qd​=680−9P+0.006M−4PR​

The Following General Linear Demand Relation $Q _ { d } = 680 - 9 P + 0.006 M - 4 P _ { R }$