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

question 202

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 and international trade is allowed.Then Boxland's consumers demand

• A)110 tons of cardboard and Boxland's producers supply 120 tons of cardboard.
• B)96 tons of cardboard and Boxland's producers supply 96 tons of cardboard.
• C)96 tons of cardboard and Boxland's producers supply 115 tons of cardboard.
• D)80 tons of cardboard and Boxland's producers supply 120 tons of cardboard.

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Definitions:

Cash Dividends

Dividends paid in the form of cash to a company’s shareholders from its current or retained earnings.

Public Corporations

are companies whose shares are traded publicly on stock exchanges, allowing them to raise capital from public investors.

Earnings

The amount of profit that a company produces during a specific period, typically reported as net income.

Capital Gain Yield

The aspect of the total gains from an investment that derives solely from its rise in price, without accounting for dividends or interest received.