$Q _ { d } = 100 - 5 P + 0.004 M - 5 P _ { R }$

question 70

Multiple Choice

$Q _ { d } = 100 - 5 P + 0.004 M - 5 P _ { R }$ ,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:

Null Hypothesis

A statement used in statistical testing which proposes that no statistical significance exists in a set of given observations.

Test Statistic

A value calculated from sample data during a hypothesis test used to determine the probability of observing such a result if the null hypothesis is true.

Null Hypothesis

A default hypothesis that there is no effect, difference, or relationship between variables or conditions being studied.

P-Value

The probability of obtaining test results at least as extreme as the results actually observed during the test, assuming that the null hypothesis is correct.