The general linear demand function below is used to answer the questions:

where Qd = quantity demanded, P = the price of the good, M = income, = the price of a good related in consumption.

-For the general linear demand function given above
B) d is the effect on the quantity demanded of the good of a one-dollar change in the price of the related good, all other things constant.
C) b is the effect on the quantity demanded of the good of a one-dollar change in the price of the good, all other things constant.
D) all of the above

Question

The general linear demand function below is used to answer the questions:

where Qd = quantity demanded, P = the price of the good, M = income,   = the price of a good related in consumption.

-For the general linear demand function given above
B) d is the effect on the quantity demanded of the good of a one-dollar change in the price of the related good, all other things constant. 
C) b is the effect on the quantity demanded of the good of a one-dollar change in the price of the good, all other things constant. 
D) all of the above

Quizplus · Accepted Answer

The Answer of The general linear demand function below is used to answer the questions:

where Qd = quantity demanded, P = the price of the good, M = income,   = the price of a good related in consumption.

-For the general linear demand function given above
B) d is the effect on the quantity demanded of the good of a one-dollar change in the price of the related good, all other things constant. 
C) b is the effect on the quantity demanded of the good of a one-dollar change in the price of the good, all other things constant. 
D) all of the above

The General Linear Demand Function Below Is Used to Answer