Let the Demand and Supply for Two Linked Products, Say $Q _ { c } d = 12$

Multiple Choice

Let the demand and supply for two linked products, say corn and soy, be the following: $Q _ { c } d = 12$ $- 2 p _ { c } + p _ { s } ; Q _ { c } { } ^ { s } = 4 + p _ { c } ; Q _ { s } ^ { d } = 6 - 4 p _ { s } + p _ { c } ; Q _ { s } { } ^ { 2 } = 4 + p _ { s }$ . 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 we conduct a partial equilibrium analysis of the corn market, taking the price of soy as given, rather than a general equilibrium analysis, allowing the price of soy to change, we:

A) underestimate the new price of corn.
B) overestimate the new price of corn.
C) correctly estimate the new price of corn.
D) Overestimate the new price of soy.