Refer to the following:
The following linear demand specification is estimated for Conlan Enterprises, a price-setting firm:
where Q is the quantity demanded of the product Conlan Enterprises sells, P is the price of that product, M is income, and
is the price of a related product. The results of the estimation are presented below:
Assume that the income is $10,000, the price of the related good is $40, and Conlan chooses to set the price of this product at $30.
-At the prices and income given above, Conlan can expect to sell _________units.
A) 342
B) 600
C) 724
D) 864
E) 872
Correct Answer:
Verified
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