The demand for microwaves in a certain country is given by: D = 8,000 - 30P, where P is the price of a microwave. Supply by domestic microwave producers is: S = 4,000 + 10P. If this economy opens to trade while the world price of a microwave is $50, and the government imposes a tariff of $30 per microwave, then the domestic quantity demanded will be ________ microwaves.
A. 5,600
B. 4,000
C. 5,000
D. 4,500
Answer: A
You might also like to view...
Which of the following has been the largest contributor to increases in the quantity of labor in the Unites States during the past 50 years?
A) The proportion of women taking paid jobs has increased. B) The proportion of young adults entering college has decreased. C) The proportion of seniors taking early retirement has decreased. D) The proportion of men taking paid jobs has increased. E) None of the above because the quantity of labor has actually decreased.
A key aspect of East Asian development policies was
a. lack of government intervention in company affairs b. government ownership of most companies c. government planning d. government incentives for particular companies e. none of the above
A monopolist will hire fewer workers than a perfectly competitive firm because
A) the marginal product curve decreases as additional units of labor are hired for a monopoly but not for a competitive firm. B) there is a variety of employers in a competitive market and only one in a monopoly. C) marginal revenue is greater than price for a monopoly while marginal revenue is equal to price for a competitive firm. D) to sell an additional unit of the good the competitive firm will keep the price the same while the monopolist must lower it on all units sold.
Suppose the exchange rate is initially set at 100 yen per dollar and increases to 125 yen per dollar. This would be expected to cause the price of U.S. goods in the Japanese economy to
A. increase. B. change in a manner that cannot be determined without additional information. C. remain the same since domestic demand remains the same. D. decrease.