Suppose the market demand curve for apples can be expressed as QD = 22

Suppose the market demand curve for apples can be expressed as QD = 220 – 2P – Pb + 0.2Y, where QD is the quantity of apples demanded, P is the price of an apple, Pb is the price of a banana, and Y is the average annual household income in thousands of dollars. What is the change in the quantity demanded of apples if the income increases by $10,000?

A) 220 apples
B) 2 apples
C) 40 apples
D) Not enough information to answer the question.

ANSWER

B