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. 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. 220
B. 200
C. 70
D. 100
E. none of the above
Answer: C
You might also like to view...
Based on the lost-income approach, which of the following 30 year old males would most likely be worth the most in terms of the value of his life?
A) Devin, a high-school dropout who works as a barista. B) Antonio, a college graduate who is on permanent disability due to severe diabetes. C) Timothy, a licensed electrician with two years of college. D) Jamal, a CPA with a master's degree in accounting.
The figure shows the demand curve for popsicles. The price elasticity of demand when the price of a popsicle increases from $0.30 to $0.50 is ________
A) 0 B) 1 C) 1/2 D) 2
Price leadership:
A) has rarely occurred in U.S. history. B) is always illegal in the United States. C) is usually the result of a dominant firm in the industry. D) usually results in the smaller firms in the industry incurring economic losses.
Fiona uses all of her income to purchase popcorn and butter. At any two points A and B on Fiona's budget constraint,
a. Fiona is equally happy. b. Fiona is spending more money on popcorn than she is spending on butter. c. Fiona's income is different. d. the price of popcorn relative to the price of butter is the same.