16. If Qda = 50 - 5Pa + 2Pb - 3Pc + 2B + 2N + (1.50) (2.2) (1.50) (-3.5) (2) (0.50)

Note: Qda is the quantity demanded for product a, Pa is the price of product a, Pb is the price of product b, Pc is the price of product c, B is the budget or the monthly income of the consumers, N is the number of consumers and e is the error term

Given the coefficients of the various determinants of demand for good a with the t values inside the parentheses, which of the following statements is correct?

A. The intercept is positive

B. We are 95% sure that the quantity demanded for good a is inversely related to Pa

C. The price of good b is a significant factor in determining the quantity demanded for good a at 5% level of significance

D. The Pc is not a significant factor in determining the quantity demanded for good a.

E. All are correct

17. If Qdx = 50 - 5Pa + 2Pb - 3Pc + 2B + 2N +

(1.50) (2.2) (1.50) (-3.5) (2) (0.50)

Given the coefficients of the various determinants of demand of good a with the t values inside the parentheses, which of the following statements is correct?

*

A. We are 95% sure that the income of the consumers significantly affects the demand for good a

B. The number of consumers is not a significant determinant of the demand for good a

C. We are 99% sure that the income of the consumers significantly affects the demand for good a

D. Only A and B are correct

E. Only B and C are correct