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

question 237

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

• A)benefits Boxlandian consumers by $721 and harms Boxlandian producers by $525.00.
• B)benefits Boxlandian consumers by $721 and harms Boxlandian producers by $598.50.
• C)benefits Boxlandian consumers by $672 and harms Boxlandian producers by $598.50.
• D)harms Boxlandian consumers by $336 and harms Boxlandian producers by $525.00.

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Definitions:

Economic Efficiency

A condition where resources are allocated in a way that maximizes the production of goods and services without wasting any resources.

Economic Efficiency

occurs when resources are allocated in a way that maximizes the production of goods and services at the lowest cost, minimizing waste and inefficiency.

Automobile Safety

Automobile Safety involves the design, equipment, and regulations that aim to minimize the occurrence and consequences of traffic accidents.

Additional Cost

Expenses that are not initially planned for but arise during the production or execution of a project, also known as incidental or unforeseen costs.