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The Demand for DVD Players in a Country Is Given

question 42

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The demand for DVD players in a country is given by D = 300 - 0.2P,where P is the price of a DVD player.Supply by domestic producers is given by S = 100 + 0.8P.The world price of a DVD player equals $100 and this economy is open to trade.If a tariff of $50 per unit is placed on DVD player imports,the quantity of DVD players produced domestically will change from __________ with no tariff to __________ with the tariff.


Definitions:

Demand Curve

A visual chart that illustrates how the demand quantity of a product or service correlates with its price over a specific time frame.

Demand Curves

Graphical representations showing the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping.

Supply Curves

An illustrative chart showing how the price of a product or service correlates with its supply during a certain period.

Law Of Supply

An increase in the price of a product will increase the quantity of it supplied; and conversely for a decrease in price.

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