Q. The R. J. Jones Company is a publisher of cowboy novels - novels about the great western experience, where men were men, horses were horses also well, you get the idea. The corporation has hired an economist to determine the Demand for its product. After months of hard work also the submission of a REALLY large bill the analyst tells the company to the Demand for the firm's novels (Qx) is given by the following equation: (Qx) = 12,000 - 5,000Px + 5I + 500Pc where Px is the price charged for the novels, I is income per capita also Pc is the price of books from competing publishers. Using this information the company managers want to:

A. Determine Illustrate what effect a price rise would have on total incomes.

B. Evaluate Elucidate how the sale of the novels would change during a period of rising incomes.

C. Assess the probable impact if competing publishers raise their prices. Assume to the initial values of Px, I also Pc are $5, $ 10,000 also $ 6, respectively.