Quiz 5 - Georgia State University Principles Macroeconomics ECON 2105 Quiz 5 Key Five multiple choice questions select the best answer(two points

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Unformatted text preview: Georgia State University Principles Macroeconomics, ECON 2105 Quiz # 5 Key Five multiple choice questions: select the best answer (two points each). 1. The inverse demand and supply of a product are given by P =500- 1 3 Q and P =50 + 2 3 Q. The net societal benefit at the equilibrium quantity equals ♠ $101,250 . b. $110,500. c. $33,750. d. $122,900. e. none of the above. In this problem from ID, a = 500, m d = 1 3 , from IS, b = 50, and m s = 2 3 . NSB = ( a- b ) 2 2( m d + m s ) = (500- 50) 2 2 ( 1 3 + 2 3 ) = 450 2 2 = $101 , 250 . 2. The inverse demand and supply of a product are given by P =50- . 10 Q P =10 + 0 . 4 Q. The net societal benefit at the equilibrium quantity is a. $2300. ♠ $1600 . c. $4450. d. $550. e. none of the above. In this problem from ID, a = 50, m d = 0 . 1, from IS, b = 10, and m s =- . 4 NSB = ( a- b ) 2 2( m d + m s ) = (50- 10) 2 2(0 . 1 + 0 . 4) = 40 2 = $1 , 600 . 3. The demand and supply of a product are given by Q =5000- 4 P and Q =- 500 + 5 P....
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This note was uploaded on 01/18/2011 for the course ECON 11853 taught by Professor Brianallenhunt during the Fall '10 term at Georgia State University, Atlanta.

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Quiz 5 - Georgia State University Principles Macroeconomics ECON 2105 Quiz 5 Key Five multiple choice questions select the best answer(two points

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