Eeonomies 1Quiz2
LInaprivate market we can sum the demands oftwo people to get marketdemand
foraproduct
ee
3
人
入
+ em
Pre re
amarket price of$2, whatisthe quantity demanded
(00. From the diagrams above,
inihe market?
(0. Suppose Alan and Betty have the following inverse demand curves and face the
same marginal costcurve.
居=100-Qx
pp 150-0.5Qs
McC=0.5Q
As in last question, we can sum the demands. So what is the ageregate demand
curve?
(ii0. With aprivate good, we can asume thateveryone pays the same priee
Therefore, imacompetitive market whatisthe quantity and price atthe
equilibrium? Whatisthe quantity Alan consumes? Whatisthe quantity Betty
comsumes?
2 Explain whatis meantbyagood being "excludable” Explain whatis meantbya
good being “rival in consumption” fsasliee ofpizzaexcludable? lsitrival im
consumption?
3. Some economists argue that private fims will not undertake the efficientamount
ofbasie scientific research.
(0. Explain why this might be so. In youranswer classify basie research in one 9f
the eategories showninFigure 1
(0. What sortofpolicy has the United States adopted in response to this problem?
(ii.1tisoften argued thatthis policy inereases thetechnologicaleapability 9f
American producers relative to thatofforeign fims. ls this argumenteonsistent