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

question 60

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.If income increases to $100,000 and the price of the related good is now $20,what is the demand function?

• A) \(Q _ { d } = 300 - 5 P\)
• B) \(Q _ { d } = 400 - 10 P\)
• C) \(Q _ { d } = 100 - 10 P\)
• D) \(Q _ { d } = 400 - 5 P\)
• E)none of the above

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Definitions:

Income Distribution

The way in which a nation’s total GDP is spread amongst its population, affecting the economic equality or disparity in a society.

Equitable Distribution

A principle aiming for a fair allocation of resources and wealth across society. It doesn't necessarily mean equal distribution but focuses on ensuring individuals have fair access to resources and opportunities.

Allocation of Resources

The process of distributing scarce resources among various uses or competing demands to maximize output or efficiency in an economy.

Income Distribution

Refers to the way in which total income is shared among the members of a society.