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

Question 17

Multiple Choice

Refer to the following:
The 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 coefficient on P


A) does not have the expected sign.
B) is negative as expected.
C) should have the same sign as the coefficient on PRP _ { R } .
D) should not be greater than one (in absolute value) .
E) both b and d

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