The Table Below Shows the Quantity Demanded (In Thousands) and Quantity

question 37

Multiple Choice

The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5

-Developing countries often justify imposition of tariffs because:

• A)it creates a burden on government budget.
• B)it is easy to collect direct taxes from people in the developing countries.
• C)a large number of people in the developing countries earn a taxable income.
• D)developing countries find income taxes difficult to levy and collect.
• E)the volume of imports of these countries is considerably low.

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Definitions:

Producer Surplus

The discrepancy between the price sellers are ready to accept for an item and the price they actually receive.

Equilibrium Price

The cost point where the amount of a product or service consumers want to buy matches the amount available, resulting in a balanced market.

Equilibrium Quantity

The quantity of goods or services supplied equals the quantity demanded at the market equilibrium price.

Efficiency

The optimal use of resources to achieve the desired outcome with minimal waste or effort.