24. Suppose demand for lentils is given by Q = 100 - 3P + 10P_k, where P_k is the price of kidney beans. Supply for lentils is given by Q = 49 + 3P - 5P_k.

Initially, the price of kidney beans is P_k = 1. By how much does the price of lentils increase if the price of kidney beans increases to P_k = 2?

D Question 15 3 pts Read pp. 361-364 in the text. Consider an n-firm Cournot oligopoly with identical firms. The best response function for firm i is qi = 100 - 0.5Q; where Q; is the combined output of all firms other than firm i. It follows that, in equilibrium, q = 100 - 0.5(n - 1)q . Which of the following is true? The equilibrium quantity for one firm is given by q* = 200/(n + 1). With 5 firms, equilibrium quantify for the industry is about 166.67. Regardless of the number of firms, industry quantity will not exceed 200. O All of the above. D Question 16 3 pts In a two-firm oligopoly Nash-Bertrand equilibrium, which of the following is true? O Deadweight loss for the industry must be positive. O The best response functions for each firm converges toward the 45-degree line as products become increasingly differentiated (hint: see Figure 11.5). O Firms choose either price or quantity, depending on which action gives the highest profits. None of the above