Use the following general linear demand relation:Qd = 100 - 5P + 0.004M - 5PRwhere P is the price of good X, M is income, and PR 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. Qd = 100 - 10P
B. Qd = 400 - 5P
C. Qd = 400 - 10P
D. Qd = 300 - 5P
E. none of the above
Answer: B
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