Question: You estimate a demand function for widgets and find that Q = 2 0 3 P + 0 . 0 4 M 1 . 8

You estimate a demand function for widgets and find that Q=203P+0.04M1.8Pr
, where Pr
is the price of a related good, the wodget. The estimated coefficients suggest that widgets are an inferior good.
Question 4Select one:
True
False

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