Given the demand function Q_X = 5,000 - 250P_X +120P_Y +.04I where P_Y= $50.00 and I = $60,000, the Q_X equation is Q_X = 13,400 + 250Px.

Question

Quizplus · Accepted Answer

The correct equation after substituting $P_Y = \$50.00$ and $I = \$60,000$ into the demand function $Q_X = 5,000 - 250P_X +120P_Y +.04I$ would be $Q_X = 5,000 - 250Px + 120*50 + .04*60,000$. After performing the calculations, the equation does not simplify to $Q_X = 13,400 + 250Px$.

Given the Demand Function QX = 5,000 - 250PX +120PY

Given the Demand Function Q_X = 5,000 - 250P_X +120P_Y