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

question 287

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 and international trade is allowed.Then Boxland's consumers demand

• A)110 tons of cardboard and Boxland's producers supply 75 tons of cardboard.
• B)110 tons of cardboard and Boxland's producers supply 96 tons of cardboard.
• C)96 tons of cardboard and Boxland's producers supply 75 tons of cardboard.
• D)96 tons of cardboard and Boxland's producers supply 96 tons of cardboard.

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Definitions:

Oral Contract

A verbal agreement between parties that is legally binding, although difficult to prove in court without witnesses or supporting documentation.

Written Confirmation

A document that provides proof of an agreement or transaction, detailing the specific terms and conditions agreed upon by the parties involved.

Finance Leases

A type of lease where the lessee has use of the asset for most of its useful life and the lease payments are designed to cover the full cost of the asset, along with interest.

Truth In Lending Act

A U.S. federal law designed to promote informed use of consumer credit by requiring disclosures about its terms and cost.