Assuming the market outcome, and a world price of $6.50 calculate the following: PriceQddomQsdomImports or exports The graph above is a basic representation of supply and demand in a market.### Axes:- **Vertical Axis (Y-axis):** Represents the price level, ranging from 0.50 to 7.00.- **Horizontal Axis (X-axis):** Represents the quantity, ranging from 10 to 140.### Supply Curve:- The supply curve is upward-sloping, indicating that as the price increases, the quantity supplied also increases. This reflects the law of supply, where higher prices incentivize producers to supply more of the good.### Demand Curve:- The demand curve is downward-sloping, illustrating that as the price decreases, the quantity demanded increases. This is in line with the law of demand, where lower prices encourage consumers to purchase more.### Intersection:- The point where the supply and demand curves intersect is the equilibrium point of the market. At this point, the quantity supplied equals the quantity demanded, and the market is in balance.This graph is a fundamental tool in economics to understand how market forces determine prices and quantities of goods and services.

1.P=world price =$6.5The price is $6.5

Answered: Assuming the market outcome, and a…

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Assuming the market outcome, and a world price of $6.50 calculate the following: Price Qddom Qsdom Imports or exports

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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Question

Assuming the market outcome, and a world price of $6.50 calculate the following:
1. Price
2. Qddom
3. Q_sdom
4. Imports or exports

The graph above is a basic representation of supply and demand in a market.

### Axes:
- **Vertical Axis (Y-axis):** Represents the price level, ranging from 0.50 to 7.00.
- **Horizontal Axis (X-axis):** Represents the quantity, ranging from 10 to 140.

### Supply Curve:
- The supply curve is upward-sloping, indicating that as the price increases, the quantity supplied also increases. This reflects the law of supply, where higher prices incentivize producers to supply more of the good.

### Demand Curve:
- The demand curve is downward-sloping, illustrating that as the price decreases, the quantity demanded increases. This is in line with the law of demand, where lower prices encourage consumers to purchase more.

### Intersection:
- The point where the supply and demand curves intersect is the equilibrium point of the market. At this point, the quantity supplied equals the quantity demanded, and the market is in balance.

This graph is a fundamental tool in economics to understand how market forces determine prices and quantities of goods and services.

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