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Scenario 4.5: The Demand Curve for Grilled Cheese Sandwiches Has Been Estimated

Question 146

Multiple Choice

Scenario 4.5:
The demand curve for grilled cheese sandwiches has been estimated using statistical techniques as follows:
log(Q) = -1.10 - 0.18 log(P) + 1.21 log(I) + 0.84 log(Ph)
where Q is the quantity of grilled cheese sandwiches
P is the price of grilled cheese sandwiches
I is income
Ph is the price of hamburgers
-Scenario 4.5 indicates that grilled cheese sandwiches and hamburgers are:


A) substitutes.
B) complements.
C) independent goods.
D) none of the above

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