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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 7

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.Income is $80,000,and the price of the related good is $40.Also let consumers' tastes change so that consumers now demand 100 more units at each price.When the price of the good is $50,how many units of the good are demanded?


A) 70
B) 200
C) 220
D) 100
E) none of the above

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