Suppose the Domestic Supply (Q^S_{U Demand (Q^D) and Supply (Q^S) in the Rest of the the United}

question 47

Multiple Choice

Suppose the domestic supply (Q^S_U.S.) and demand (Q^D_U.S) for bicycles in the United States are given by the following set of equations: $$\begin{array} { l } Q ^ { \mathrm { S } } \mathrm { U.S } . = 2 \mathrm { P } \\\mathrm { Q } _ { ^\mathrm { D } U . S } = 200 - 2 \mathrm { P } .\end{array}$$ Demand (Q^D) and supply (Q^S) in the Rest of the World are given by the equations: $$\begin{array} { l } Q ^ { S } = P \\Q ^ { D } = 160 - P .\end{array}$$ Quantities are measured in thousands and price in U.S. dollars. After the opening of free trade with the Rest of the World, if the world price of the bicycles settles at $60, the U.S. will:

• A)export 40,000 bicycles.
• B)export 60,000 bicycles.
• C)import 60,000 bicycles.
• D)import 40,000 bicycles.

---

Definitions:

Hypermarkets

Large retail stores that combine a supermarket and a department store, offering a wide range of food and non-food items under one roof.

Evolutionary Psychology

A theoretical approach in psychology that examines the ways in which human psychological traits and behaviors are shaped by evolutionary forces.

Evolutionary Theory

A scientific theory which explains how organisms change over generations through the processes of natural selection and genetic variation.

Objections

Expressions or statements of disagreement or refusal, often used in contexts of debate, legal proceedings, or negating a proposal.