Suppose the market for Blu-rays has the demand and supply schedules shown in the table above. Suppose a technological advance increases the quantity of disks supplied at each price by 25 million
What is the new equilibrium price and the new equilibrium quantity of Blu-rays?
The initial equilibrium price is $11.50 and the initial equilibrium quantity is 30 million disks per month. The technological advance increases the supply by 25 million disks. As a result, the equilibrium price falls to $11.00 and the equilibrium quantity increases to 40 million disks.
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A currency is undervalued if its exchange rate vis-à-vis a foreign currency is:
A) not pegged. B) at the equilibrium exchange rate. C) above the equilibrium exchange rate. D) below the equilibrium exchange rate.
An example of a tariff is a:
A) limit on the total number of Honda automobiles imported from Japan. B) regulation specifying that each imported Honda automobile must meet certain emission exhaust guidelines. C) tax of $500 on each Honda automobile produced in the United States. D) tax of 10 percent of the value of each Honda automobile imported from Japan.