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 supplied will be ________ microwaves.
A. 4,800
B. 5,000
C. 4,000
D. 4,500
Answer: A
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Everything else equal, a decrease in the supply of dollars in exchange for pesos:
A) will cause the dollars to depreciate against the pesos and will decrease the quantity of dollars being traded in the foreign exchange market. B) will cause the dollars to appreciate against the pesos and will increase the quantity of dollars being traded in the foreign exchange market. C) will cause the dollars to depreciate against the pesos and will increase the quantity of dollars being traded in the foreign exchange market. D) will cause the dollars to appreciate against the pesos and will decrease the quantity of dollars being traded in the foreign exchange market.
High price and low total utility indicate
A. low marginal utility. B. large quantities are sold. C. high marginal utility. D. a high price/marginal utility ratio.
Recovery in the United States after the Great Recession can be characterized as:
a. U-shaped b. L-shaped c. V-shaped. d. W-shaped.
Tax Wedge
What will be an ideal response?