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

question 277

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.Suppose the world price of cardboard is $45.Then,relative to the no-trade situation,international trade in cardboard produces which of the following results for Boxland?

• A)It increases consumer surplus,decreases producer surplus,and increases total surplus.
• B)It increases consumer surplus,increases producer surplus,and increases total surplus.
• C)It increases consumer surplus,decreases producer surplus,and decreases total surplus.
• D)It decreases consumer surplus,increases producer surplus,and increases total surplus.

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Definitions:

Interval Scale

A type of measurement scale that allows for the ranking of items based on quantifiable intervals or differences between them, without a true zero point.

Celsius

A scale of temperature in which water freezes at 0 degrees and boils at 100 degrees under standard conditions.

Unobtrusive Measures

Methods of collecting data that do not interfere with the subjects being studied.

Reactivity

Reactivity is the tendency of people to alter their performance or behavior due to the awareness that they are being observed.