Question: Use the following general linear demand relation to answer the question below: Qd = 100 - 5 P + 0.004 I - 5 Pr where

  1. Use the following general linear demand relation to answer the question below:

Qd= 100 - 5P+ 0.004I -5Pr

wherePis the price of goodX,Iis income, andPris the price of a related good,R.

What is the demand function whenI= $50,000 andPr= $10?

A. Qd= 350 - 5P
B. Qd= 300 - 5P
C. Qd= 200 - 5P
D. Qd= 100 - 5P
E. None of the above

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