In Problem 6, the Demand Function for Schrecklichs Is 200

question 4

Multiple Choice

In Problem 6, the demand function for Schrecklichs is 200 - 4P_S - 2P_L and the demand function for LaMerdes is 200 - 3P_L - P_S, where P_S and P_L are respectively the price of Schrecklichs and LaMerdes. If the world supply of Schrecklichs is 140 and the world supply of LaMerdes is 180, then the equilibrium price of Schrecklichs is

• A) $15.
• B) $14.
• C) $2.
• D) $16.
• E) $28.

---

Definitions:

Third Country

A country that is neither the parent country nor the host country of an employer.

Third-Country National

An individual employed by a company who is neither a citizen of the country where the company is headquartered nor of the country where they are working.

Host-Country National

An individual who is a citizen of the country in which a foreign subsidiary or company operates.

Parent-Country National

An individual who is employed by an organization or corporation in their home country and is working in another country where the organization operates.