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Use the Following General Linear Demand Function Below Qd=a+bP+cM+dPRQ _ { d } = a + b P + c M + d P _ { R }

Question 33

Multiple Choice

Use the following general linear demand function below: Qd=a+bP+cM+dPRQ _ { d } = a + b P + c M + d P _ { R } where Qd = quantity demanded,P = the price of the good,M = income, PRP _ { R } = the price of a good related in consumption.For the general linear demand function given above


A) ΔQd/ΔM=c\Delta Q _ { d } / \Delta M = c
B) d is the effect on the quantity demanded of the good of a one-dollar change in the price of the related good,all other things constant.
C) b is the effect on the quantity demanded of the good of a one-dollar change in the price of the good,all other things constant.
D) all of the above

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