A simple linear demand function may be stated as Q = a - bP + cI where Q is quantity demanded, P is the product price, and I is consumer income. To compute an appropriate value for c, we can use observed values for Q and I and then set the estimated income elasticity of demand equal to:

If the purchasing power of the dollar is greater than the purchasing power of the euro, purchasing power parity predicts that the exchange rate will

A) not fluctuate and stay constant in the long run. B) increase if the exchange rate is greater than 1 euro per dollar. C) decrease if the exchange rate is less than 1 euro per dollar. D) be equal to the relative purchasing power across the currencies in the long run.

How does affirmative action laws affect policing? Do they improve policing?

What will be an ideal response?