Chapter 16: General Equilibrium Theory Available Study Resources on Quizplus for this Chatper 56 Verified Questions 56 Flashcards Source URL: https://quizplus.com/quiz/57818 Sample Questions Q1) Let the demand and supply for two linked products,say corn and soy,be the following: Q_c^d= Q_c^s 6-4p_s + 12 = - 2p_c 4+p_c; p_c; + p_s; Q_s^d 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 - 2p_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? A) p_c = 5.14; p_s =1.43 B) p_c = 6.20; p_s =2.15 C) p_c = 2.50; p_s =2.50 D) p_c = 4.35; p_s =2.00 Q2) Your textbook discussed a model of a simple economy with four markets: labor,capital,energy,and food.Which of the following statements is inconsistent with a general equilibrium for this simple economy? A) The household demand for energy equals the industry supply of energy. B) The household demand for food equals the industry supply of food. C) The household demand for labor equals the industry supply of labor. D) The household supply of capital equals the industry demand for capital. To view all questions and flashcards with answers, click on the resource link above. Page 18