Question: The estimated demand for a good is Q = 25 5 P + 0.32 M + 12 P R where Q is the quantity demanded

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. This good and the related good R are

Multiple Choice

substitutes since the coefficient on P_R is positive.

complements since the coefficient on P_R is positive.

substitutes since the coefficient on M is positive.

complements since the coefficient on M is positive.

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