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

question 211

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 Econland was entirely closed to international trade, the equilibrium price and quantity would be

• A) $9 and 2,000 units.
• B) $8 and 1,800 units.
• C) $7 and 2,000 units.
• D) $6 and 1,400 units.

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Definitions:

Unique Smartphone

A mobile phone that offers distinct features or innovations not commonly found in standard models, setting it apart from competitors in the market.

Skimming Pricing

A pricing strategy where a new product is priced high at launch to maximize profitability from customers willing to pay a premium before lowering the price over time.

Initial Price

The starting price at which a product, asset, or service is first offered to the market.

Skimming Pricing Policy

A pricing strategy where a high price is set for a new product to maximize profits from market segments willing to pay more.