The Following Linear Demand Specification Is Estimated for Conlan Enterprises,a $Q = a + b P + c M + d P _ { R }$

question 57

Multiple Choice

The following linear demand specification is estimated for Conlan Enterprises,a price-setting firm: $Q = a + b P + c M + d P _ { R }$ where Q is the quantity demanded of the product Conlan Enterprises sells,P is the price of that product,M is income,and $P _ { R }$ is the price of a related product.The results of the estimation are presented below: For the next 2 questions suppose income remains at $10,000 but the price of the related good increases to $60 and Conlan decides to raise the price of its product to $50.What is the new own price elasticity of demand?

• A)-0.24
• B)-0.43
• C)-0.87
• D)-1.00
• E)-1.26

---

Definitions:

Carl Jung

A Swiss psychiatrist and psychoanalyst who founded analytical psychology, emphasizing the importance of the individual psyche and the personal quest for wholeness.

Alfred Adler

An Austrian medical doctor, psychotherapist, and founder of the school of individual psychology, known for emphasizing the importance of feelings of inferiority and the creative self in the development of personality.

Karen Horney

A prominent psychoanalyst known for her theories on neurotic personality, which diverged from Freud's perspectives, emphasizing socio-cultural factors in human development.

Compulsive Masturbator

An individual who engages in masturbation with such frequency and intensity that it causes significant distress or impairment in daily functioning.