Multiple Choice
Refer to the following:
The estimated demand for a good is
where Q is the quantity demanded of the good, P is the price of the good, M is income, and
is the price of related good R.
-If income decreases by $1,000, all else constant, quantity demanded will ________ by _________ units.
A) decrease; 320 units.
B) increase; 3.2 units
C) decrease; 1200 units
D) increase; 500 units
E) increase; 500 units.
Correct Answer:

Verified
Correct Answer:
Verified
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