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Use the Following General Linear Demand Relation Qd=1005P+0.004M5PRQ _ { d } = 100 - 5 P + 0.004 M - 5 P _ { R }

Question 58

Multiple Choice

Use the following general linear demand relation: Qd=1005P+0.004M5PRQ _ { d } = 100 - 5 P + 0.004 M - 5 P _ { R } where P is the price of good X,M is income,and PRP _ { R } is the price of a related good,R.What is the demand function when M = $50,000 and PRP _ { R} = $10?


A) Qd=3505PQ _ { d } = 350 - 5 P
B)
Qd=3005PQ _ { d } = 300 - 5 P

C) Qd=2005PQ _ { d } = 200 - 5 P

D) Qd=1005PQ _ { d } = 100 - 5 P

E) none of the above

Correct Answer:

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