When estimating a demand function for a good where quantity demanded is a linear function of the price, you should
A)not include an intercept because the price of the good is never zero.
B)use a one-sided alternative hypothesis to check the influence of price on quantity.
C)use a two-sided alternative hypothesis to check the influence of price on quantity.
D)reject the idea that price determines demand unless the coefficient is at least 1.96.

Question

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The Answer of When estimating a demand function for a good where quantity demanded is a linear function of the price, you should
A)not include an intercept because the price of the good is never zero.
B)use a one-sided alternative hypothesis to check the influence of price on quantity.
C)use a two-sided alternative hypothesis to check the influence of price on quantity.
D)reject the idea that price determines demand unless the coefficient is at least 1.96.

When Estimating a Demand Function for a Good Where Quantity