The Demand for Cars in a Certain Country Is Given

question 149

Multiple Choice

The demand for cars in a certain country is given by: D = 20,000 - P, where P is the price of a car. Supply by domestic car producers is: S = 5,000 + 0.5. If this economy is open to trade, and the world price of a car is $6,000, and the government imposes a quota allowing 3,000 cars to be imported, then domestic price of the car will be ________.

• A)$5,000
• B)$6,000
• C)$8,000
• D)$10,000

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