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. 5,000
B. 4,800
C. 4,500
D. 4,000
Answer: B
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What will be an ideal response?
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A. borrowers only. B. savers only. C. the government only. D. both savers and borrowers.
A technological improvement in the production of tablets would
A) increase the demand for tablets. B) increase the supply of tablets. C) decrease the demand for tablets. D) decrease the supply of tablets.
An increase in aggregate demand in the economy will have what effect on macroeconomic equilibrium in the long run?
A) The price level will fall, and the level of GDP will rise. B) The price level will fall, and the level of GDP will fall. C) The price level will rise, and the level of GDP will fall. D) The price level will rise, and the level of GDP will be unaffected.