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. This good and good R are
A. complements since the coefficient on PR is negative.
B. substitutes since the coefficient on M is negative.
C. complements since the coefficient on M is negative.
D. substitutes since the coefficient on PR is negative.
E. none of the above
Answer: A
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If the price level in the United States increases relative to prices in foreign countries, then
A. imports and exports of the United States will increase. B. imports and exports of the United States will decrease. C. imports of the United States will decrease and exports of the United States will increase. D. imports of the United States will increase and exports of the United States will decrease.
Higgs (1971) finds evidence to suggest that railroads did take advantage of farmers before 1896
Indicate whether the statement is true or false