Intermediate Microeconomics EC202 Lekima Nalaukai Semester II, 2018 Tutorial 13 Questions Chapter 16 Part A: Multiple Choices 1.Let the demand and supply for two linked products, say corn and soy, be the following: Qcd= 12 –2pc+ ps; Qcs= 4+pc; Qsd= 6-4ps+ pc; Qss= 4 + ps. The superscript refers to “demand” (d) or “supply”(s) and the subscript refers to corn (c) or soy (s). What are the equilibrium prices of corn and soy? A.pc= 2; ps= 2 B.pc= 1; ps= 3 C.pc= 3; ps= 1 D.pc= 1; ps= 1
2.According to Walras’ Law, in a general competitive equilibrium with a total of ____ markets, if supply equals demand in the first _____ markets, then supply will equal demand in the _____ market as well.
3.To begin with, John has 6 units of Good X and Jane has 3 units of Good X. If X is measured horizontally in an Edgeworth box, then how wide should the Edgeworth box be?