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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 60

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.If income increases to $100,000 and the price of the related good is now $20,what is the demand function?


A) Qd=3005PQ _ { d } = 300 - 5 P
B) Qd=40010PQ _ { d } = 400 - 10 P
C) Qd=10010PQ _ { d } = 100 - 10 P
D) Qd=4005PQ _ { d } = 400 - 5 P
E) none of the above

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