You lose your job and as a result your demand for steak falls. ...

[olgavictoria]

You lose your job and as a result your demand for steak falls. This implies that you consider steaks to be a
 a. Complementary good
  b. Normal good
  c. Inferior good
  d. Substitute good

Question 2

When there is multicollinearity in an estimated regression equation,
 a. the coefficients are likely to be small.
  b. the t-statistics are likely to be small even though the R2 is large.
  c. the coefficient of determination is likely to be small.
  d. the problem of omitted variables is likely.
  e. the error terms will tend to have a cyclical pattern.

[macagn]

Answer to Question 1

b

Answer to Question 2

b