Suppose the Domestic Supply (Q^S) and Demand (Q^D) for Skateboards $$\begin{array} { l } Q ^ { S } = - 60 + 3 P \\Q ^ { D } = 390 - 2 P\end{array}$$

question 9

Multiple Choice

Suppose the domestic supply (Q^S) and demand (Q^D) for skateboards in the United States are given by the following set of equations: $$\begin{array} { l } Q ^ { S } = - 60 + 3 P \\Q ^ { D } = 390 - 2 P\end{array}$$ Calculate the change in consumer surplus when the United States engages in free trade and imports skateboards from the rest of the world at a per unit price of $75.

• A)+$2,850
• B)-$2,850
• C)-$6,300
• D)+$3,375

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Definitions:

Actual Reserves

The total amount of funds or commodities a bank holds at a given time, including both required and excess reserves.

Required Reserves

The minimum amount of funds that a bank is required to hold in reserve against deposits made by customers, as mandated by regulatory authorities.

Required Reserve Ratio

The fraction of deposits that banks are required to keep on hand as reserves, either in cash or as deposits with a central bank.

Checkable Deposits

Deposits in financial institutions that can be withdrawn by writing a check or using a debit card.