Author Question: Refer to the demand and supply equations. At a price of 5, there will be ________. Fill in the ... (Read 112 times)

rl · **on:** Jul 1, 2018

Refer to the demand and supply equations. At a price of 5, there will be ________.

Fill in the blank(s) with correct word

Question 2

The moral hazard associated with managers whose productivity is difficult to quantify can be decreased with

A) piece-rate contracts.
B) year-end bonuses.
C) decreased wages.
D) adverse selection.

samiel-sayed · **Reply #1 on:** Jul 1, 2018

Answer to Question 1

Qd = 80 - 2 (5 ) = 70 units
Qs = -10 + 4 (5 ) = 10 units
Thus, at a price of 5 which is below the equilibrium price, we have an excess demand or shortage of 60 units

Given the production function Y = 10X + 20X2 - X3, answer the questions below.

Answer to Question 2

B