Cereal firm has estimated the demand for its product to be Q=15-1.5P+3Y-2ps+Pc, where P is the price of the good, Y is the consumer's income, P_S and P_C are prices of related goods. If P=3, Y=10, P_S=3 and P_C=3, what is the estimated demand for the firm's product? A) 32.5 B) 35.5 C) 37.5 D) 40.5

Question

Quizplus · Accepted Answer

Plugging the given values into the demand equation Q=15-1.5P+3Y-2Ps+Pc gives Q=15-1.5(3)+3(10)-2(3)+3 = 37.5.

Cereal Firm Has Estimated the Demand for Its Product to Be