Refer to the Accompanying Table for a Certain Product's Market

question 286

Multiple Choice

$$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Quantity Demanded } \\\text { Domestically }\end{array} & \text { Price } & \begin{array} { c } \text { Quantity Supplied } \\\text { Domestically }\end{array} \\\hline 1,400 & \$ 10 & 2,200 \\\hline 1,600 & 9 & 2,000 \\\hline 1,800 & 8 & 1,800 \\\hline 2,000 & 7 & 1,600 \\\hline 2,200 & 6 & 1,400 \\\hline 2,400 & 5 & 1,200 \\\hline\end{array}$$ Refer to the accompanying table for a certain product's market in Econland. If the world price for this product were $6, then Econland would import

• A) 400 units and domestic producers would supply 1,400.
• B) 800 units and domestic producers would supply 1,400.
• C) 800 units and domestic producers would supply 2,200.
• D) 400 units and domestic producers would supply 2,200.

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Definitions:

Recession

A period of temporary economic decline during which trade and industrial activity are reduced, usually identified by a fall in GDP in two successive quarters.

Demand Elasticity

A measure of how sensitive the quantity demanded of a good is to a change in its price.

Price Conscious

Being aware of and giving importance to the cost of goods and services when making purchasing decisions.

Demand

The desire combined with purchasing power for specific goods or services at a given time and price.