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

Question 15

Multiple Choice

Refer to the following:
The 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 good and good R are


A) complements since the coefficient on M is negative.
B) substitutes since the coefficient on M is negative.
C) complements since the coefficient on PRP _ { R } is negative.
D) substitutes since the coefficient on PRP _ { R } is negative.
E) none of the above

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