a.complements since the coefficient on M is positive.
b.substitutes since the coefficient on M is positive.
c.complements since the coefficient on is positive.
d.substitutes since the coefficient on is positive.
-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 $2,000,all else constant,quantity demanded will ________ by _________ units.
A)increase; 1.30 units
B)decrease; 6.5 units
C)increase; 1,300 units
D)decrease; 65 units

Question

a.complements since the coefficient on M is positive.
b.substitutes since the coefficient on M is positive.
c.complements since the coefficient on  is positive.
d.substitutes since the coefficient on  is positive.
-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 $2,000,all else constant,quantity demanded will ________ by _________ units.
A)increase; 1.30 units 
B)decrease; 6.5 units 
C)increase; 1,300 units 
D)decrease; 65 units

Quizplus · Accepted Answer

The Answer of a.complements since the coefficient on M is positive.
b.substitutes since the coefficient on M is positive.
c.complements since the coefficient on  is positive.
d.substitutes since the coefficient on  is positive.
-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 $2,000,all else constant,quantity demanded will ________ by _________ units.
A)increase; 1.30 units 
B)decrease; 6.5 units 
C)increase; 1,300 units 
D)decrease; 65 units

A.complements Since the Coefficient on M Is Positive