The Diagram Below Shows Supply and Demand Curves for Bicycles

question 7

Multiple Choice

The diagram below shows supply and demand curves for bicycles in the domestic Canadian market. Assume that all bicycles are identical. FIGURE 34- 4
-Refer to Figure 34- 4. Assume there is free trade in bicycles. At a world price of $300, Canada's
Will be bicycles per year.

• A) imports; 20 000
• B) exports; 20 000
• C) exports; 30 000
• D) exports; 50 000
• E) imports; 30 000

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Definitions:

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing and able to purchase at various prices over a specific period.

Price Elasticity

Price elasticity measures how the quantity demanded of a good or service changes in response to a change in its price. It signifies the responsiveness of demand to price changes.

Quantity Demanded

Refers to the total amount of a good or service that consumers are willing and able to purchase at a given price in a specified period.

Relative Change

The measure of how much a variable changes in proportion to a reference amount.