The estimated demand for a good is
= 4800 - 16P - 0.65M - 1.5PRwhere Q is the quantity demanded of the good, P is the price of the good, M is income, and PR is the price of related good R. The good is
A. an inferior good since the coefficient on M is negative.
B. a normal good since the coefficient on M is greater than one (in absolute value).
C. a normal good since the coefficient on PR is negative.
D. an inferior good since the coefficient on PR is negative.
E. none of the above
Answer: A
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