Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 22, Problem 9DQ
To determine
The agricultural sector and support price.
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Based on Figure 48, choose the correct statement. Assume that Nation 2 imposes a
quota (30X) on imports of X (an agricultural commodity).
Figure 48 Partial equilibrium effects of an import quota
Py (S)
25
10
20 25 30
40
50 55 60 65 70
O 1)
Given the increase in demand from Dx to D'x, the price of X increases to
$2.5, and the quota is 20X.
2)
Given the increase in demand from Dx to D'x, the price of X increases to
$2.5, and the quota is 55X.
3)
Given the increase in demand from Dx to D'x, the price of X increases to $2,
and the quota is the same.
O 4) Given the increase in demand from Dx to D'x, the price of X increases to
$2.5, and the quota is the same.
Please examine the market for AC units below. In this market, the Home nation has
imposed a quota limiting the number of AC units that foreign nations are allowed to
export into the Home economy. Based on this diagram, what was the level of that
quota?
Price
$12
$11
$10
59
50
$7
56
55
$4
53
52
51
0
Home Market for AC Units
123
O 3 units
Quantity
IS 5+Q
XX
4 or more units
Pw
O 1 unit
O2 units Consumer Surplus Producer Surplus
Consumer Surplus
Producer Surplus
Price
$12
$11
$10
$9
S8
$7
$6
$5
$4
$3
$2
$1
0
International Market for AC Units
1
C
Se
2 3 4 5 6 7 8 9 10
Quantity
Question 3
Demand in a domestic market is represented by the curve P = 200 - Q Supply is represented by P = 20 + 0.5Q. The world price is 120. If this country opens the market to what will the gains from trade be?
O $600
O 33.600
O $2.400
O $1,200
Chapter 22 Solutions
Microeconomics
Ch. 22 - Prob. 1DQCh. 22 - Prob. 2DQCh. 22 - Prob. 3DQCh. 22 - Prob. 4DQCh. 22 - Prob. 5DQCh. 22 - Prob. 6DQCh. 22 - Prob. 7DQCh. 22 - Prob. 8DQCh. 22 - Prob. 9DQCh. 22 - Prob. 10DQ
Ch. 22 - Prob. 11DQCh. 22 - Prob. 12DQCh. 22 - Prob. 13DQCh. 22 - Prob. 14DQCh. 22 - Prob. 1RQCh. 22 - Prob. 2RQCh. 22 - Prob. 3RQCh. 22 - Prob. 4RQCh. 22 - Prob. 5RQCh. 22 - Suppose that corn currently costs 4 per bushel and...Ch. 22 - Suppose chat both wheat and corn have an income...Ch. 22 - Prob. 3PCh. 22 - Prob. 4P
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