# Suppose chicken breasts and pork steaks are

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Review Questions-ch-16

Suppose chicken breasts and pork steaks are substitute goods If the supply of from ECON 3000 at Trent University

1 .   Suppose chicken breasts and barbeque sauce are known to be complements , a change in tastes toward a greater demand for chicken will likely cause
a ) an increase in the price of chicken and a drop in the price of barbeque sauce .
b ) an increase in the price of chicken and an increase in the price of barbeque sauce .
c ) a drop in the price of chicken and a drop in the price of barbeque sauce .
d ) a drop in chicken prices and an increase in the price of barbeque sauce .
2 .   The general equilibrium effects of an excise tax on a commodity which would then be used to fund improvements to our national parks
3 .   Suppose chicken breasts and pork steaks are substitute goods . If the supply of chicken breasts increases we would expect the price of pork steaks to go ________ and the equilibrium quantity of pork steaks to go __ ______
4 .   Let the demand and supply for two linked products , say corn and soy , be the following : Q c d = 12 – 2 p c + p s ; Q c s = 4 + p c ; Q s d = 6 - 4 p s + p c ; Q s s = 4 + p s . 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 ?
5 .   Let the demand and supply for two linked products , say corn and soy , be the following : Q c d = 12 – 2 p c + p s ; Q c s = 4 + p c ; Q s d = 6 - 4 p s + p c ; Q s s = 4 + p s . The superscript refers to “ demand ” ( d ) or “ supply ” ( s ) and the subscript refers to corn ( c ) or soy ( s ) . Now , suppose that the demand for corn shifts to Q c d = 18 – 2 p c + p s . If the price of soy is free to adjust in response to this shift , what are the new equilibrium prices of corn and soy ?
6 .   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 .
7 .   Exchange efficiency means
a ) that we can reallocate a fixed basket of consumption goods among consumers in a way that makes all consumers better off .
b ) that we can not reallocate a fixed stock of inputs among firms so that we can simultaneously expand the output of all goods produced in an economy .
c ) that we can not reallocate a fixed basket of consumption goods among consumers in a way that makes all consumers better off .
d ) that we can reallocate a fixed stock of inputs among firms so that we can simultaneously expand the output of all goods produced in an economy .
Answer:  C.   that we can not reallocate a fixed basket of consumption goods among consumers in a way that makes all consumers better off .
8 .   Two individuals , A and B , consume two goods , x and y . Consumer A initially has 3 units of x and 2 units of y . Consumer B initially has 5 units of x and 6 units of y . B x y x y MRS  . Does this initial allocation of x and y represent an efficient allocation ?
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Chapter 14 / Exercise 27
Mathematical Applications for the Management, Life, and Social Sciences
Harshbarger
Expert Verified
3.Suppose chicken breasts and pork steaks are substitute goods. If the supply of chicken breasts increases we would expect the price of pork steaks to go ________ and the equilibrium quantity of pork steaks to go ________ a)down, down b)down, up c)up, down d)up, up Ans: A
4.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?
##### We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
The document you are viewing contains questions related to this textbook.
Chapter 14 / Exercise 27
Mathematical Applications for the Management, Life, and Social Sciences
Harshbarger
Expert Verified
5.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).Now, suppose that the demand for corn shifts to Qcd= 18 2pc+ ps. If the price of soy is free to adjust in response to this shift, what are the new equilibrium prices of corn and soy?
6.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.