Business, 05.05.2020 08:26 Arneis

For a small country called Boxland, the equation of the domestic demand curve for
cardboard is

,Qd=200-2P

where represents the domestic quantity of cardboard demanded, in tons, and
represents the price of a ton of cardboard.

• For Boxland, the equation of the domestic supply curve for cardboard is

,Qs=-60+3P

where represents the domestic quantity of cardboard supplied, in tons, and again
represents the price of a ton of cardboard.

10. Refer to Scenario 9-2. Suppose the world price of cardboard is $45. Then, relative to the no-trade situation, international trade in cardboard

a.

harms Boxlandian consumers by $336 and harms Boxlandian producers by $525.00.

b.

benefits Boxlandian consumers by $721 and harms Boxlandian producers by $525.00.

c.

benefits Boxlandian consumers by $672 and harms Boxlandian producers by $598.50.

d.

benefits Boxlandian consumers by $721 and harms Boxlandian producers by $598.50

Answers: 2

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For a small country called Boxland, the equation of the domestic demand curve for
cardboard i...

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