10Spring.quiz02.equilibrium.etc.

10Spring.quiz02.equilibrium.etc. - Quiz 2 ECON 5203...

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ECON 5203 Managerial Economics 2010 Spring Dr. May Name ___________________________ ID No. __________________________ Use the following generalized linear demand relation to answer questions 1 through 5: 680 9 0.006 4 d R Q P M P = - + - where M is income and R P is the price of a related good, R . 1. From this relation it is apparent that the good is: a. an inferior good b. a substitute for good R c. a normal good d. a complement for good R e. both c and d 2. If M = $15,000 and R P = $20, the demand function is a. 690 9 d P Q = - . b. 690 9 d Q P = - . c. 680 9 d Q P = - . d. 680 9 d P Q = - . e. 800 19 d Q P = - . 3. If M = $15,000 and R P = $20 and the supply function is 30 3 s Q P = + , equilibrium price and quantity are, respectively, a. P = $55 and Q = 195. b. P = $6 and Q = 38. c. P = $12 and Q = 200. d. P = $50 and Q = 170. e. P = $40 and Q = 250. 4. If M = $15,000 and R P = $20 and the supply function is 30 3 s Q P = + , then, when the price of the good is $60, a. there is a shortage of 60 units of the good. b.
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10Spring.quiz02.equilibrium.etc. - Quiz 2 ECON 5203...

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