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

Use the mark-up price formula to calculate the optimal price for Brennan's product.(Please review the log-linear demand equation in slide 3in module 2to know how to find price elasticity of demand from a log-linear demand equation.)

A. $5

B. $10

C. $8

D. $16