Consider a smail country where the domesbic market for sandals is described by the following demand and supply equations, respectively: P 100-(1/2)Q and P-20 (1/3Q where Prepresents the price of. pair of sandals and Q represents the quantity of sandals. The world price for a pair of sandals is $45. Therefore the gains from trade would be $122.50 S88.75 $135.00 $102.50

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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Consider a small country where the domestic market for sandals is described by the following demand and supply equations, respectively: P- 100 - (1/2)Q and P- 20 • (1/3Q where Prepresents the price of a
pair of sandais and Q represents the quantity of sandals. The world price for a pair of sandals is $45, Therefore the gains from trade would be
$122.50
$88.75
$135.00
$102.50
Transcribed Image Text:Consider a small country where the domestic market for sandals is described by the following demand and supply equations, respectively: P- 100 - (1/2)Q and P- 20 • (1/3Q where Prepresents the price of a pair of sandais and Q represents the quantity of sandals. The world price for a pair of sandals is $45, Therefore the gains from trade would be $122.50 $88.75 $135.00 $102.50
A monopolist faces the demand curve P-200-Q. The monopolist's marginal cost and marginal revenue curves are represented by MC-3Q and MR-200-20. respectively. What is the deadweight loss due to
monopoly?
200
150
40
400
O o O o
Transcribed Image Text:A monopolist faces the demand curve P-200-Q. The monopolist's marginal cost and marginal revenue curves are represented by MC-3Q and MR-200-20. respectively. What is the deadweight loss due to monopoly? 200 150 40 400 O o O o
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