This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
According to the graph shown, if the economy were open to free trade, the domestic quantity supplied would:
A. drop from 815 to 500.
B. increase from 250 to 500.
C. increase from 815 to 1500.
D. drop from 815 to 250.
Answer: D
Economics
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An 18 percent increase in the price of small cars results in a 10 percent expansion in the quantity supplied. The supply elasticity in this range equals ________
A) 9/5 B) 5/9 C) 7/10 D) 4/10
Economics
If the United States imposed higher tariffs and more restrictive quotas that reduced imports,
What will be an ideal response?
Economics