The Brennan company estimate the log-linear demand equation, log(Q)= 10 - 2 log(P) + 0.5 log(I ) for its product. Where Q is the quantity demanded (in 000), P is the price (in dollars per unit), and I is consumer's disposable income. Marginal cost of air filter currently stands at $5.

Use the mark-up price formula to calculate the optimal price for Brennan's product.

		$5.
		$10.
		$8.
		$16.

2. CBC estimates the demand equation for it's club facility as P = 30 - 2Q. The marginal cost of provide service is $2. How much is the equilibrium Q?

		2
		49
		16
		7
		28
		30

3. CBC estimates the demand equation for it's club facility as P = 30 - 2Q. The marginal cost of provide service is $2. How much is the equilibrium Price for CBC services?

		$2
		$49
		$16
		$7
		$28
		$30