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

question 265

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.If Boxland prohibits international trade in cardboard,then the equilibrium price of a ton of cardboard is

• A)$36 and the equilibrium quantity of cardboard is 74 tons.
• B)$44 and the equilibrium quantity of cardboard is 88 tons.
• C)$52 and the equilibrium quantity of cardboard is 96 tons.
• D)$60 and the equilibrium quantity of cardboard is 100 tons.

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Definitions:

Available-for-sale

This is a classification for investments that a company plans to sell but are not actively traded, with changes in value reported in other comprehensive income.

Unrealized Gain

A profit that has occurred on paper due to an investment's increased value but has not yet been realized through a sale.

Market Value

The estimated worth or price at which an asset would trade in a competitive auction setting.

Accounting

The systematic process of recording, analyzing, and reporting financial transactions of a business or individual.