2.8 Imports and Market Supply. Two nations supply sugar to the world market. Lowland has a minimum supply price of 10 cents per pound, while Highland has a minimum supply price of 24 cents per pound. For each nation, the slope of the supply curve is 1 cent per million pounds. a. Draw the individual supply curves and the market supply curve. At what price and quantity is the sup- ply curve kinked? b. The market quantity supplied at a price of 15 cents is million pounds. The market quantity million supplied at a price of 30 cents is pounds.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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2.8 Imports and Market Supply. Two nations supply
sugar to the world market. Lowland has a minimum
supply price of 10 cents per pound, while Highland
has a minimum supply price of 24 cents per pound. For
each nation, the slope of the supply curve is 1 cent per
million pounds.
a. Draw the individual supply curves and the market
supply curve. At what price and quantity is the sup-
ply curve kinked?
b. The market quantity supplied at a price of 15 cents
is
million pounds. The market quantity
million
supplied at a price of 30 cents is
pounds.
Transcribed Image Text:2.8 Imports and Market Supply. Two nations supply sugar to the world market. Lowland has a minimum supply price of 10 cents per pound, while Highland has a minimum supply price of 24 cents per pound. For each nation, the slope of the supply curve is 1 cent per million pounds. a. Draw the individual supply curves and the market supply curve. At what price and quantity is the sup- ply curve kinked? b. The market quantity supplied at a price of 15 cents is million pounds. The market quantity million supplied at a price of 30 cents is pounds.
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