The Diagram Below Shows the (Hypothetical)demand and Supply Curves for Regional

question 61

Multiple Choice

The diagram below shows the (hypothetical) demand and supply curves for regional jets in Canada.Assume that the market is competitive,all jets are identical,and that Canada engages in international trade. FIGURE 32-6 Refer to Figure 32-6.Assume the world price of a regional jet is $20 million.Further,suppose that Canada disallowed international trade in regional jets.With no trade in regional jets,Canadian consumers will spend ________ at the domestic equilibrium price and quantity versus ________ for the same quantity at the world price.

• A)$1000 million; $1800 million
• B)$1800 million; $1000 million
• C)$1400 million; $2100 million
• D)$2100 million; $2100 million
• E)$2100 million; $1400 million

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Definitions:

Cartoonists' Labor

The creative and artistic work performed by cartoonists, including drawing cartoons or comic strips.

Jokes

Short stories or statements designed to provoke laughter or amusement.

Short-Run Marginal Cost

The increase in cost that results from producing one additional unit of output, specifically in the short term where at least one input is fixed.

Production Function

An equation or graph that shows the maximum output of goods that can be produced from different combinations of inputs.