Use the Following General Linear Demand Relation $Q _ { d } = 100 - 5 P + 0.004 M - 5 P _ { R }$

question 58

Multiple Choice

Use the following general linear demand relation: $Q _ { d } = 100 - 5 P + 0.004 M - 5 P _ { R }$ where P is the price of good X,M is income,and $P _ { R }$ is the price of a related good,R.What is the demand function when M = $50,000 and $P _ { R}$ = $10?

• A) \(Q _ { d } = 350 - 5 P\)
• B)
• \(Q _ { d } = 300 - 5 P\)
• C) \(Q _ { d } = 200 - 5 P\)
• D) \(Q _ { d } = 100 - 5 P\)
• E)none of the above

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Definitions:

Behavioral Economists

Researchers who study the psychological, social, cognitive, and emotional factors influencing the economic decisions of individuals and institutions.

Ultimatum Game

A game in experimental economics in which two players interact to decide how to divide a sum of money that is given by the experimenter.

Dictator Game

An economic experiment where one player (the 'dictator') determines the division of a sum of money between themselves and another player.

Behavioral Economists

Economists who study how psychological, cognitive, emotional, cultural and social factors affect economic decisions of individuals and institutions.