The estimated demand for a good is = 25 - 5P + 0.32M + 12PRwhere 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 coefficient on P

A. should have the same sign as the coefficient on PR.
B. is negative as expected.
C. does not have the expected sign.
D. should not be greater than one (in absolute value).
E. both b and d


Answer: B

Economics

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