B Domestic demand and supply for wheat are given by: Qd = 1000 - 20P Os = 500 + 30P Suppose that supply declines by 30 percent. The equilibrium price will increase by OA $8.46 OB $2.00 OC. $3.64 OD $5.85 empted 11/30 8 Suppose demand and supply of gasoline are given by the following linear functions: Qd = 100 - 20P Os = 50 + 10P where Q is the quantity in millions of litres and P is the price per litre. Suppose a tax of $1.00 per litre is imposed on gasoline. The deadweight loss equals: O A $2.13 million OB $3.33 million OC. $4.03 million OD. $2.70 million Previous page 25 26 27 28 29 Next page tempted: 11/38 8 Assume that ly = 0.15% and that I = 0. If the one-year interest rate is 5% and the two-year interest rate is 5.75%, then i, is equal to: - OA 5.90% OB. 6.20% OC 5.15% OD 5.60% 18 The following production possibilities schedule shows the quantities of quinoa and soybeans that can be produced in Canada and Brazil with one unit of equivalent resources Soybeans Quinoa (bushels) (bushels) 13 7 5 13 Canada Brazil To achieve the potential gains from international trade, OA Brazil should export quinoa to Canada and import Canadian soybeans. OB. Brazil should exclude soybeans from its consumption OC. Brazil should export soybeans to Canada and import Canadian quinoa OD. Brazil should produce both quinoa and soybeans and not trade with Canada 38 Assume the following: Number of Workers Number of Phones 0 0 1 6 2. 11 3 13 If each phone sells for $50 per unit, then the marginal revenue product of labour at 3 workers is equal to DA 100 OB 50 C. 550 OD 650