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In the Demand Equation Log(Q) = a - B Log(P)

Question 37

Multiple Choice

In the demand equation log(Q) = a - b log(P) + b2 log(P2) + c log(I) , where P is the price of the good in question, P2 is the price of a second good and I is income, the second good must be:


A) a normal good.
B) an inferior good.
C) a substitute for the good in question.
D) a complement for the good in question.

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