Scenario 9-2 • for a Small Country Called Boxland,the Equation of the of the Domestic

question 237

Multiple Choice

Scenario 9-2
• For a small country called Boxland,the equation of the domestic demand curve for
cardboard is ,
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 ,
where represents the domestic quantity of cardboard supplied,in tons,and again
represents the price of a ton of cardboard.
-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)benefits Boxlandian consumers by $721 and harms Boxlandian producers by $525.00.
• B)benefits Boxlandian consumers by $721 and harms Boxlandian producers by $598.50.
• C)benefits Boxlandian consumers by $672 and harms Boxlandian producers by $598.50.
• D)harms Boxlandian consumers by $336 and harms Boxlandian producers by $525.00.

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Definitions:

Limited Partnership

A partnership consisting of one or more general partners who manage the business and are personally liable, and one or more limited partners whose liability is restricted to their investment.

Transferable Rights

Rights or privileges that can be transferred or assigned from one party to another, either freely or under certain conditions.

LLLP

A Limited Liability Limited Partnership, a form of business organization that combines elements of a partnership and limited liability protections.

State Statute

Laws and regulations enacted by state legislatures that govern within the state’s borders.