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 M = $50,000 and PR= $10 and the supply function is Qs = 150 + 5P, market price and output are, respectively,
A. P = $10 and Q = 200.
B. P = $12 and Q = 150.
C. P = $15 and Q = 175.
D. P = $12 and Q = 200.
E. P = $15 and Q = 225.
Answer: A
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