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:

Olfactory Tract

Nerve tract that projects from the olfactory bulb to the olfactory cortex.

Transmembranous Receptor

Proteins spanning across the membrane of cells that receive chemical signals from outside the cell and initiate a response within the cell.

Odorant

A substance that is capable of producing a smell, often detected by the olfactory system.

Olfactory Neurons

Specialized nerve cells responsible for the sense of smell, located in the nasal cavity.