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Estimated Demand for a Good Is Q^=4,80016P0.65M1.5PR\hat { Q } = 4,800 - 16 P - 0.65 M - 1.5 P _ { R }

Question 37

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estimated demand for a good is Q^=4,80016P0.65M1.5PR\hat { Q } = 4,800 - 16 P - 0.65 M - 1.5 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 coefficient on P


A) violates the law of demand.
B) is negative as dictated by the law of demand.
C) should not be greater than one (in absolute value) .
D) should have the same sign as the coefficient on PRP _ { R } .
E) both c and d

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