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The demand for video recorders has been estimated to be linear and given by the demand function: Qv=145-3.2Pv+7M-0.95Pf-39Pm, where Qv is the quantity of recorders, Pf is the price of recorders, Pm is price of attending movies, Pv is price of recorders, and M is income.
Based on demand we can conclude:
a. video recorders are normal goods
b. the demand for video recorders is inelastic
c. video recorders are normal goods and the demand is inelastic
d. video recorders are normal goods and video recorder film is a complement of video recorders
What is the answer and WHY.
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