Use the following general linear demand relation:Qd = 680 - 9P + 0.006M - 4PR where M is income and PR is the price of a related good, R. If M = $15,000 and PR = $20 and the supply function is Qs = 30 + 3P, equilibrium price and quantity are, respectively,
A. P = $6 and Q = 38.
B. P = $40 and Q = 250.
C. P = $12 and Q = 200.
D. P = $50 and Q = 170.
E. P = $55 and Q = 195.
Answer: E
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a. True b. False
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