Suppose Milk and Cereal Are Compliments and the Demand for Milk

question 25

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.What is the general equilibrium quantity of milk?

• A) 6.22 million gallons
• B) 1.48 million gallons
• C) Zero gallons
• D) 50.56 million gallons

---

Definitions:

Uterine Tube

A part of the female reproductive system, connecting the ovaries to the uterus, where fertilization typically occurs.

Neuron Networks

Complex systems of neurons interconnected to form pathways that process and transmit information throughout the nervous system.

Lanugo

The fine, soft hair that covers the body and limbs of a human fetus, which is usually shed before birth and replaced by vellus hair.

Bone Marrow

A flexible tissue found in the interior cavities of bones that is a major site of blood cell production.