Question 19
2 pts
The estimated demand for a good is
$$Q = 25 - 5P + 0.32M + 12P_R$$
where Q is the quantity demanded of the good, P is the price of the good, M is income, and $$P_R$$ is the price of related good R. The coefficient on P
O should have the same sign as the coefficient on $$P_R$$
O is negative as expected.
O does not have the expected sign.
O should not be greater than one (in absolute value).
O both "is negative as expected" and "should not be greater than one (in absolute value)".