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

[rl]

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]

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

[rl]

Thanks for the timely response, appreciate it

[fatboyy09]

YES! Correct, THANKS for helping me on my review