ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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The graph below shows the market for tres in the United States, a nation that is open to international trade but is assumed to be s
poce taker unable to affect the world price of tires
Market for Tires
Price dolars per es
320
200
240
200
140
120
NO
40
Qu
400 120 160 200 240 280 320
Quantity (one of ses)
a Using the graph above, at the wond price of $80 per tre, how many tires will the United States import
mkon pres
Now suppose the US government imposes a quota as shown as the graph above
4
b Uung this same graph, indicate the new markert equabinum with the quota iniposed and the domestic quantity suppited (0₂)
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Transcribed Image Text:The graph below shows the market for tres in the United States, a nation that is open to international trade but is assumed to be s poce taker unable to affect the world price of tires Market for Tires Price dolars per es 320 200 240 200 140 120 NO 40 Qu 400 120 160 200 240 280 320 Quantity (one of ses) a Using the graph above, at the wond price of $80 per tre, how many tires will the United States import mkon pres Now suppose the US government imposes a quota as shown as the graph above 4 b Uung this same graph, indicate the new markert equabinum with the quota iniposed and the domestic quantity suppited (0₂)
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