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Price and quantity demanded are inversely related; therefore, this is the correct algebraic sign.
c) The slope parameter for income: - 0.03.
This would mean that good A is an inferior good because for every $1 increase in income, the consumer demanded 0.03 units less of the good. The equation displays a negative correlation between income and quantity demanded.
d) The slope parameter for the price of good B: - 12.
This slope parameter explains that goods A and B are substitutes because if there is an increase in price of good B, consumers will demand less of it, and perhaps go back to consuming good A...
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