View the step-by-step solution to:


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

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question