Multiple Choice
Using linear regression analysis, Tim's Home Supply Company estimated its demand function for paint with the following results.
Where:
QP = Gallons of paint sold per year at Tim's
PP = price per gallon of paint
PW = price of wallpaper
Y = Average annual household income
Given the above information:
A) when income rises, people will buy more wallpaper
B) when income decreases, people will buy more paint
C) when income rises, people will buy more paint
D) paint and wallpaper are complementary goods
E) none of the above
Correct Answer:

Verified
Correct Answer:
Verified
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