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

question 23

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 $60.Then,if Boxland goes from prohibiting international trade in cardboard to allowing international trade in cardboard,

• A)domestic producers of cardboard become better off and domestic consumers of cardboard become better off.
• B)domestic producers of cardboard become better off and domestic consumers of cardboard become worse off.
• C)domestic producers of cardboard become worse off and domestic consumers of cardboard become better off.
• D)domestic producers of cardboard become worse off and domestic consumers of cardboard become worse off.

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Definitions:

Assignment Clause

A provision in a contract that permits the transfer of rights and obligations to another party under specified conditions.

Metal Fabrication

The process of building machines and structures from raw metal materials through cutting, bending, and assembling.

Prime Properties

Real estate assets considered to be of the highest quality and value, often due to their location, amenities, or income-generating potential.

Proportionate Amounts

Quantities or shares that are in correct or specified relationships in size, number, or amount relative to each other.