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Use the Following General Linear Demand Relation to Answer Questions Qd=6809P+0.006M4PRQ _ { d } = 680 - 9 P + 0.006 M - 4 P _ { R }

Question 14

Multiple Choice

Use the following general linear demand relation to answer questions : Qd=6809P+0.006M4PRQ _ { d } = 680 - 9 P + 0.006 M - 4 P _ { R } where M is income and PRP _ { R } is the price of a related good, R.
-If M = $15,000 and PRP _ { R } = $20 and the supply function is Qs=30+3PQ _ { s } = 30 + 3 P , equilibrium price and quantity are, respectively,


A) P = $55 and Q = 195.
B) P = $6 and Q = 38.
C) P = $12 and Q = 200.
D) P = $50 and Q = 170.
E) P = $40 and Q = 250.

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