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svetoff [14.1K]
4 years ago
12

Consider the market for widgets. Widgets can be produced in the United States or abroad. Assume that U.S. consumers wish to buy

the least expensive widgets possible. However, if widgets from all countries cost the same, consumers would prefer to buy domestically. Price Quantity Demanded Quantity Supplied Domestically Quantity Supplied by Importers If Trade Is Allowed $6 13,000 2,000 8,000 $7 12,000 4,000 8,000 $8 11,000 6,000 8,000 $9 10,000 8,000 8,000 $10 9,000 9,000 8,000 $11 8,000 10,000 8,000 If there is no international trade allowed in the market, what price would we expect?
Business
1 answer:
Tomtit [17]4 years ago
6 0

Answer:

$10

Explanation:

Price    Q Demanded      Q Supplied Domestically    Q Supplied by Importers  $6              13,000                        2,000                                        8,000

$7               12,000                       4,000                                        8,000

$8               11,000                        6,000                                        8,000

$9               10,000                       8,000                                        8,000

<u>$10              9,000         =             9,000 </u><u>  </u>                                     8,000

$11               8,000                       10,000                                        8,000

If there is no international trade allowed, then we should look for the price at which the quantity demanded is equal to the quantity supplied by domestic producers. At $10 per widget, the total quantity demanded is 9,000 units and the total quantity supplied by domestic producers is 9,000 units.

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A public good is a good that is non excludable and non rivalrous. It cannot be  provided to one person without making it available to others as well. If one person is using it, it does not stop other people from using it also. An example of a public good is roads.

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A club good is a type of public good. It is excludable but non-rivalrous. For example paid streaming services are an example of a club good. Those who do not subscribe are excluded from using the service. But all subscribers have equal assess to the service

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