Hello Course Hero Tutors,

I need assistance with the following problem below. Please provide a step by step detailed explanation on how you get the answer.Many Thanks in advance -

The following linear demand specification is estimated for Conlan Enterprises, a price-setting firm:

Q = a + bP +cM +dP_R

whereQis the quantity demanded of the product Conlan Enterprises sells,Pis the price of that product,Mis income, andP_Ris the price of a related product. The results of the estimation are presented below:

(My apologies, I could not paste the graph)

For the next 2 questions suppose income remains at $10,000 but the price of the related good increases to $60 and Conlan decides to raise the price of its product to $50. At the prices and income given above, Conlan can expect to sell _________units.

A. 342

B. 600

C. 724

D. 864

E. 872