If Apple Won an Order to Sell 500 of Its

question 42

Multiple Choice

If Apple won an order to sell 500 of its new minicomputers to Australia,but the Australian government stipulated that 20 percent of the component parts of the minicomputers that it purchased must be produced in Australia,that stipulation would be an example of a(n)

• A) ad valorem content requirement.
• B) specific content requirement.
• C) ad hoc content requirement.
• D) local content requirement.
• E) domestic producer content.

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Definitions:

Equilibrium Price

The price in the market where the amount of products provided matches the amount of products wanted.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given period of time.

Supply

The overall quantity of a product or service accessible to buyers.

Inverse Supply Curve

A representation of the relationship between the price of a good and its supply, showing how quantity supplied decreases as price decreases, contrary to the typical direct supply relationship.