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

question 49

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.

---

Definitions:

Sexual Assault

Any non-consensual sexual act or behavior committed by an individual against another.

Spousal Abuse

A pattern of abusive behavior by one partner towards another in an intimate relationship, including physical, sexual, emotional, or psychological harm.

Antisocial Personality Disorder

A mental disorder characterized by a long-term pattern of disrespect for, and violation of, the rights of others.

Autonomic Nervous System

The part of the nervous system that controls involuntary actions of the body, such as heart rate, digestion, and respiratory rate.