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

question 47

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: Assume that the income is $10,000,the price of the related good is $40,and Conlan chooses to set the price of this product at $30.At the prices and income given above,Conlan can expect to sell _________units.

• A)342
• B)600
• C)724
• D)864
• E)872

---

Definitions:

Strengths

Positive attributes of an organization. These are internal resources and capabilities that support a company to achieve its mission, goals, and competitive advantage.

Weaknesses

Areas where a business or product lacks strength or is less competitive compared to others in the market.

Opportunities

Potential situations in the market that, when leveraged, can lead to the growth and success of a business.

Threats

External challenges or dangers that could potentially harm the operation, objectives, or survival of an organization or system.