Solved

The Estimated Demand for a Good X Is Q^=703.5P0.6M+4PZ\hat { Q } = 70 - 3.5 P - 0.6 M + 4 P _ { Z }

Question 49

Multiple Choice

The estimated demand for a good X is Q^=703.5P0.6M+4PZ\hat { Q } = 70 - 3.5 P - 0.6 M + 4 P _ { Z } ,where Q^\hat { Q } = units of the good,P = price of the good,M = income,and PzP _ { z } = price of related good Z.All parameter estimates are statistically significant.Which of the following statements is correct?


A) X is a normal good.
B) X is an inferior good.
C) X and Z are substitutes.
D) X and Z are complements.
E) both b and c

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions