Suppose Milk and Cereal Are Compliments and the Demand for Milk

question 52

Multiple Choice

Suppose milk and cereal are compliments and the demand for milk is Q^d_m = 40 - 6P_m - 2P_c,where Q^d_m stands for millions of gallons of milk demanded,P_m stands for the price of milk and P_c stands for the price of cereal.The supply of milk is Q^s_m = 6P_m - 8,where Q^s_m stands for millions of gallons of milk supplied.The demand and supply of cereal are Q^d_c = 90 - 5P_c - P_m and Q^s_c = 5P_c - 10,respectively,where Q^d_c stands for millions of boxes of cereal demanded and Q^s_c stands for millions of boxes of cereal supplied.Which of the following gives the market-clearing curve for milk?

• A) P_m = 4 - (P_c/6)
• B) P_m = (32/12) - (P_c/6)
• C) P_m = (32 - 2P_c)/12
• D) P_m = (32/12) + (P_c/6)

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Definitions:

Spontaneous Combustion

The phenomenon where a material ignites without an external ignition source due to heat generated internally, often through chemical reactions, microbial action, or self-heating.

Prokaryotic

Describing organisms whose cells lack a nucleus, including bacteria and archaea, characterized by a simpler organizational structure compared to eukaryotic cells.

Autotroph

Organisms that produce their own food from inorganic substances, using light or chemical energy.

Cyanobacteria

Photosynthetic bacteria that are often found in aquatic environments, capable of producing oxygen through the process of photosynthesis.