Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Question
Chapter 34, Problem 7E
To determine
To find:
The international
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Country Y
Price
Qdd
Osd
$ 9.00
250
450
8.00
300
400
7.00
350
350
6.00
400
300
5.00
450
250
The accompanying table gives data for Country Y. Column 1 is the price of a product. Column 2 is the quantity demanded domestically (Qdd).
and Column 3 is the quantity supplied domestically (Qsd). If the world price of the product is $9.00, then Country Y will
Country Y
LEGO
Price
Odd
Osd
$ 9.00
250
450
8.00
300
400
7.00
350
350
6.00
400
300
5.00
450
250
The accompanying table gives data for Country Y. Column 1 is the price of a product. Column 2 is the quantity demanded domestically (Qdd), and Column
3 is the quantity supplied domestically (Qsd. If the world price of the product is $5.00, then Country Y will
Price
10
Price at which good sells = 7.25
Price at which good sells = 6
Marginal cost of producing
amount traded = 4
Marginal cost of producing
amount traded = 2.75
Price
Price
gap=t gap=t
4,000 6,000
Quantity
Figure 18.3 The market for cars: Price gaps reflect trade costs.
The exporter's
supply curve
The consumer's
demand curve
15,000
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Similar questions
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- I asked this question in an earlier assignment; It was a bonus question about price floors and tariffs. I’m curious if your answers have changed. Would tariffs on imported wine be a price floor?arrow_forwardWhy do consumers in the United States pay more than double the world price for sugar?arrow_forwardThe demand for cameras in a certain country is given by D = 8000 – 30P, where P is the price of acamera. Supply by domestic camera producers is S = 4000 + 10P. If this economy opens to tradewhile the world price of a camera is $50, and the government imposes a tariff of $30 per camera,what will be the quantity of cameras that this country imports or exports?arrow_forward
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