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Estimated Demand for a Good Is Q^=255P+0.32M+12PR\hat { Q } = 25 - 5 P + 0.32 M + 12 P _ { R }

Question 6

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estimated demand for a good is Q^=255P+0.32M+12PR\hat { Q } = 25 - 5 P + 0.32 M + 12 P _ { R } where Q is the quantity demanded of the good,P is the price of the good,M is income,and PRP _ { R } is the price of related good R.The good is


A) an inferior good since the coefficient on PRP _ { R } is positive.
B) a normal good since the coefficient on PRP _ { R } is positive.
C) an inferior good since the coefficient on M is greater than one.
D) a normal good since the coefficient on M is positive.
E) none of the above

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