The demand for video recorders has been estimated to be QV = 134 – 1.07PF + 46PM -2.1PV – 5I, where QV is the quantity of video recorders, PF denotes the price of video recorder film, PM is the price of attending a movie, PV is the price of video recorders, and I is income. Based on the estimated demand equation we can conclude:
| video recorders are inferior goods. | |
| video recorder film is a substitute for video recorders. | |
| the demand for video recorders is inelastic. | |
| the demand for video recorders is neither inferior nor inelastic, and video recorder film is not a substitute for video recorders. |
