In Problem 6, the Demand Function for Schrecklichs Is 200

question 13

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 150 and the world supply of LaMerdes is 150, then the equilibrium price of Schrecklichs is

• A) $5.
• B) $20.
• C) $15.
• D) $12.50.
• E) $10.

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