{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

midreview

# midreview - Review for midterm Tuesday July 5 QUESTION...

This preview shows pages 1–9. Sign up to view the full content.

Review for midterm Tuesday, July 5

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
QUESTION 1 (aggregate demand) Suppose that, in some market, there are 5 potential buyers, each with the same marginal benefit function, MB i = 6 Q i , and there are 5 potential sellers, each with the same marginal cost function, MC i = 2 + Q i . Which of the following gives the correct market demand function (the combined demand of all 5 buyers)? A) Q D = 90 7P B) Q D = 10 P C) Q D = 30 5P D) Q D = 40 4P E) Q D = 20 8P
answer to question 1 Suppose that, in some market, there are 5 potential buyers, each with the same marginal benefit function, MB i = 6 Q i , and there are 5 potential sellers, each with the same marginal cost function, MC i = 2 + Q i . Which of the following gives the correct market demand function (the combined demand of all 5 buyers)?

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
QUESTION 2 (aggregate supply) Suppose that, in some market, there are 5 potential buyers, each with the same marginal benefit function, MB i = 6 Q i , and there are 5 potential sellers, each with the same marginal cost function, MC i = 2 + Q i . Which of the following gives the correct market supply function (the combined supply of all 5 sellers)?
answer to question 2 Suppose that, in some market, there are 5 potential buyers, each with the same marginal benefit function, MB i = 6 Q i , and there are 5 potential sellers, each with the same marginal cost function, MC i = 2 + Q i . Which of the following gives the correct market supply function (the combined demand of all 5 sellers)?

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
QUESTION 3 (equilibrium price) 5 buyers, each with MB i = 6 Q i 5 sellers, each with MC i = 2 + Q i Q D = 30 5P Q S = 5P 10 What is the price of the good in market equilibrium? A) 4 B) 3 C) 5 D) 7 E) 1
answer to question 3 5 buyers, each with MB i = 6 Q i 5 sellers, each with MC i = 2 + Q i Q D = 30 5P Q S = 5P 10 P = 4 A) 4 B) 3 C) 5 D) 7 E) 1

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 43

midreview - Review for midterm Tuesday July 5 QUESTION...

This preview shows document pages 1 - 9. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online