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Suppose a Small Island Nation Imports Sugar for Its Population

question 144

Multiple Choice

Suppose a small island nation imports sugar for its population at the world price of $1,500 per ton. The domestic market for sugar is shown below. Suppose a small island nation imports sugar for its population at the world price of $1,500 per ton. The domestic market for sugar is shown below.   With no subsidy, the equilibrium price of sugar is ______ per ton, and the equilibrium quantity is ______ tons per day. A) $1,000; 12 B) $1,000; 8 C) $1,500; 12 D) $1,500; 8 With no subsidy, the equilibrium price of sugar is ______ per ton, and the equilibrium quantity is ______ tons per day.


Definitions:

Optimal Choice

The most efficient allocation of resources or decision making that maximizes benefit or utility for an individual or entity.

Twizzlers

A brand of fruit-flavored candy in the form of twisted ropes, known for its chewy texture.

Normal Good

A good whose demand increases when consumer income rises and decreases when consumer income falls, ceteris paribus.

Consumer

A person or collective that buys products or services for their own consumption and not for making or selling them.

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