Suppose the domestic market demand function in a certain market where Q is measured in thousands of units is Qd = 20 - 2.5P, and the domestic market supply function is Qs = 2.5P - 7.5. Suppose further that the world price for the good in question is $3.40 per unit. Under conditions of free trade, how much producer surplus will there be?
A. $26,450
B. $200
C. $400
D. $600
B. $200
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In the figure above, the demand is unit elastic
A) at the point where the price is $3.00 per cup B) at the point where the price is $2.00 per cup C) at the point where the price is $4.00 per cup D) at the point where the price is $2.50 per cup E) at all points along the demand curve
Which view of the causes of the Great Depression emphasizes factors largely external to the domestic economy, particularly the Gold Standard?
(a) The Monetarists' (b) The Keynesians' (c) The Austrians' (d) The International View
Market failures
A) prevent the price system from attaining economic efficiency. B) result in quantities and prices that are socially desirable. C) strengthen economic efficiency by forcing unprofitable firms to close. D) weaken the argument for government intervention in the economy.
Some critics have argued that moving children to private schools might reduce the _________ of education.
A. pure public goods aspect B. positive externalities C. size of library holdings D. size of teachers unions influence