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Estimated Demand for a Good Is Q^=255P+0.32M+12PR\hat { Q } = 25 - 5 P + 0.32 M + 12 P _ { R }

Question 48

Multiple Choice

estimated demand for a good is Q^=255P+0.32M+12PR\hat { Q } = 25 - 5 P + 0.32 M + 12 P _ { R } where Q is the quantity demanded of the good,P is the price of the good,M is income,and PRP _ { R } is the price of related good R.If the price of the good falls by $4,the quantity demanded will ________ by ________ units.


A) increase; 5 units
B) increase; 20 units
C) increase; 50 units
D) increase; 48 units
E) decrease; 12 units

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