The Demand for Shoes in a Country Is Given by D

question 92

Multiple Choice

The demand for shoes in a country is given by D = 60 - 0.5P,where P is the price of a pair of shoes.Supply by domestic producers is given by S = 20 + 0.5P.The world price of a pair of shoes equals $30 and this economy is open to trade.If a quota of 6 pairs is placed on shoe imports,the quantity of shoes produced domestically will change from __________ pairs with no quota to _________ pairs with the quota.

• A) 35;40
• B) 35;37
• C) 40;35
• D) 40;37
• E) 37;40

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Definitions:

Auto Emissions

Pollutants released into the atmosphere from the exhaust of an internal combustion engine vehicle, which contribute to air pollution and environmental damage.

Pollution Permits

Government-issued licenses allowing the holder to emit a certain amount of pollutants into the environment.

Chicago Board

Typically signifies the Chicago Board of Trade (CBOT) or Chicago Board Options Exchange (CBOE), prominent platforms for trading commodities and options respectively.

Economic System

Represents the method employed by societies to allocate resources, produce goods and services, and distribute them amongst its members.