The domestic demand and supply for sugar are Qd = 40,000 ? 200P and QSD = 10,000 + 300P. The foreign supply is QSF = 20,000 + 100P. Suppose an import quota of 5,000 is imposed in the domestic market. How many units of sugar will domestic producers supply after the quota is imposed?
A. 30,000
B. 25,000
C. 35,000
D. 20,000
Answer: B
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Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
The tax represented here is
A. progressive.
B. proportional.
C. regressive.
D. None of these choices
Assume that one laborer produces 6 units of output, two laborers produce 14 units, three laborers 22 units, four laborers 24 units, and five laborers 25 units. Diminishing returns set in when the firm hires:
a. the first laborer. b. the second laborer. c. the third laborer. d. the fourth laborer. e. the fifth laborer.
When government provides goods and services, they are often produced in which of the following ways and why?
a. inefficiently because the government only produces when the benefits nation-wide outweigh the costs b. efficiently because the government always makes efficient decisions c. efficiently because the government allows special interest groups to determine what is produced d. inefficiently because there is no competition and no potential of going out of business