Refer to the table above for a certain product's market in econland. if the world price of the product were $6 and an import quo

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FinnZ [79.3K]

3 years ago

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Refer to the table above for a certain product's market in econland. if the world price of the product were $6 and an import quo

ta of 400 units were imposed on the product, then the equilibrium price in econland would be:

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1 answer:

Reil [10] · Answer 1 · 2022-02-24T09:35:27+03:00

The answer is not $6 and the total quantity available in Econland would be 2,200 units. Refer to the above graph which shows the import demand and export supply curves for two nations that produce a product. In this two-nation model, the equilibrium world price and quantity will be C and Q2.