Multiple Choice
Suppose milk and cereal are compliments and the demand for milk is ,where
stands for millions of gallons of milk demanded,
stands for the price of milk and
stands for the price of cereal.The supply of milk is
,where
stands for millions of gallons of milk supplied.The demand and supply of cereal are
and
,respectively,where
stands for millions of boxes of cereal demanded and
stands for millions of boxes of cereal supplied.Solve for the general equilibrium quantity of cereal.
A) 20.5 million boxes
B) Zero
C) 38.8 million boxes
D) 46.25 million boxes
Correct Answer:

Verified
Correct Answer:
Verified
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Q2: The market-clearing curve for complementary goods is<br>A)
Q4: The input efficiency condition<br>A) Holds if at
Q5: The production contract curve<br>A) Shows every efficient
Q6: The contract curve<br>A) Shows the unique Pareto
Q7: According to the principle of utilitarianism<br>A) Society
Q8: The modern treatment of general equilibrium was
Q9: Utilitarianism<br>A) Was favored by John Nash<br>B) Was
Q10: General equilibrium analysis<br>A) Is the study of
Q11: The market-clearing curve for substitutes is<br>A) Horizontal<br>B)