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Question

Suppose you estimate the following demand equation:

 

Q = 10 - 6P +10Pb - 6I

 

Q is the

quantity of apples

P is the price of apples

Pb is the price of oranges

I is income

 

From the information given, we can conclude that:              

A. apples are sensitive to price changes

B. the law of demand is violated

C. apples are a normal good

D. apples and oranges are substitutes

Top Answer

The correct answer is: As the price of apples increases less of it is bought. However more oranges are... View the full answer

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