The demand for good X is estimated to be Q_x^d = 10,000 − 4P_X + 5P_Y + 2M + A_X where P_X is the price of X,P_Y is the price of good Y,M is income,and A_X is the amount of advertising on X.Suppose the present price of good X is $50,P_Y = $100,M = $25,000,and A_X = 1,000 units.What is the quantity demanded of good X? A) 61,500 B) 61,300 C) 61,300 − 4P_X D) 61,500 − 4P_X

Question

Quizplus · Accepted Answer

Plug in the given values:
Q = 10,000 - 4(50)(1) + 5(100)(1) + 2(25,000) + 1,000(50)(1)
Q = 61,300
Therefore, the quantity demanded of good X is 61,300.

The Demand for Good X Is Estimated to Be Qxd

The Demand for Good X Is Estimated to Be Q_x^d