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The General Linear Demand Function Below Is Used to Answer Qd=a+bP+cM+dPRQ _ { d } = a + b P + c M + d P _ { R }

Question 16

Multiple Choice

The general linear demand function below is used to answer questions :
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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