A semiconductor is a key component in your laptop, cell phone, and iPod. The table provides information about the market for semiconductors in the United States. Producers of semiconductors can get $18 a unit on the world market. PRICE ( DOLLAR PER UNIT) QUANTITY DEMANDED (billions of units per year) QUANTITY SUPPLIED (billions of unit per year) 10 25 0 12 20 20 14 15 40 16 10 60 18 5 80 20 0 100 Due to the loss of competitiveness brought on by appreciation of the exchange rate and the high production costs, U.S.government reduce the export(or limit the supply of domestic producers) by imposing an export quota of 20 billion units per year. What happens to U.S. price of semiconductors, the quantity of semiconductors bought by U.S. people, and the quantity of semiconductors exported? use the equation to calculate the equilibrium
A semiconductor is a key component in your laptop, cell phone, and iPod. The table provides information about the market for semiconductors in the United States. Producers of semiconductors can get $18 a unit on the world market.
PRICE ( DOLLAR PER UNIT) |
QUANTITY DEMANDED (billions of units per year) |
QUANTITY SUPPLIED (billions of unit per year) |
10 | 25 | 0 |
12 | 20 | 20 |
14 | 15 | 40 |
16 | 10 | 60 |
18 | 5 | 80 |
20 | 0 | 100 |
Due to the loss of competitiveness brought on by appreciation of the exchange rate and the high production costs, U.S.government reduce the export(or limit the supply of domestic producers) by imposing an export quota of 20 billion units per year. What happens to U.S. price of semiconductors, the quantity of semiconductors bought by U.S. people, and the quantity of semiconductors exported? use the equation to calculate the equilibrium
Step by step
Solved in 2 steps