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

question 7

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.Income is $80,000,and the price of the related good is $40.Also let consumers' tastes change so that consumers now demand 100 more units at each price.When the price of the good is $50,how many units of the good are demanded?

• A)70
• B)200
• C)220
• D)100
• E)none of the above

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