The Following Table Shows the Demand, Supply, and Price of Tulips

question 3

Multiple Choice

The following table shows the demand, supply, and price of tulips in the Netherlands. If the world price of tulips is $1 and there are no trade restrictions, the Netherlands will:

• A) produce 7,000, consume 10,000, and export 3,000 tulips.
• B) produce 10,000 and consume 10,000 tulips.
• C) produce 9,000, consume 6,000, and export 6,000 tulips.
• D) import all of the tulips that it consumes.
• E) consume all of the tulips that it produces.

---

Definitions:

Clayton Act

A U.S. antitrust law, passed in 1914, aimed at preventing anticompetitive practices and monopolies by regulating specific business activities.

Anticompetitive Effect

Refers to actions that negatively affect competition in a market, including practices like monopoly, price fixing or others that hinder free competition.

Vertical Mergers

A combination of two or more companies involved in different stages of the supply chain process for a specific product or service.

Economic Efficiencies

A measure of how well resources are used to achieve economic goals, minimizing waste and maximizing output.