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The Estimated Demand for a Good Is Q^=70−3.5P−0.6M+4Pz\hat { Q } = 70 - 3.5 P - 0.6 M + 4 P _ { z }

Question 8

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The estimated demand for a good is Q^=70−3.5P−0.6M+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 are 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

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