Use the following graph, where Sd and Dd are the domestic supply and demand curves for a product, to answer the next question.
Suppose the world price of the product is $6. If this market is closed to international trade the total revenue that would go to domestic producers would be ________, and if the market is open to international trade the total revenue for domestic producers would be______.
A. $500; $240
B. $600; $240
C. $600; $120
D. $240; $120
Answer: C
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If production involves increasing opportunity cost, then on the production possibilities frontier, moving to a point closer to the horizontal axis will increase the opportunity cost of
A. the good that is shown on the horizontal axis. B. the good that is shown on the vertical axis. C. both of the goods shown on the axes. D. neither of the goods shown on the axes.
The graph shows the market for holiday condos in West Palm Beach. The equilibrium rent is ________ a week
A) any amount less than $1,550 B) any amount greater than $1,550 C) $1,550 D) $4,000 E) None of the above answers is correct.
Consider a small open economy in equilibrium. What happens to the real interest rate, national saving, investment, and the current account balance in equilibrium in each of the following situations (each taken separately)
Explain which curve shifts and why, and show a diagram explaining your results. (You may assume that none of the shocks is large enough to significantly affect labor supply or labor demand significantly.) (a) wealth declines (b) business taxes decline (c) income rises temporarily
Perfectly competitive firms are known for being “price makers.”
Answer the following statement true (T) or false (F)