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

question 31

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 33- 6
-Refer to Figure 33- 6. If the world price of a regional jet is $30 million, Canada will

• A)import 70 jets per year.
• B)export 50 jets per year.
• C)neither import nor export any jets.
• D)import 90 jets per year.
• E)export 70 jets per year.

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Definitions:

Desired Return

Desired return refers to the expected financial gain or profit an investor aims to achieve from an investment over a specific period.

Investment

Investment refers to the allocation of resources, typically financial, in assets or projects with the expectation of earning a return.

Target Cost

The maximum amount that can be spent on a product while still earning the desired profit margin, usually determined during the design and development stages.

Investment

Assigning financial resources with the aim of achieving returns or making a profit.