Chapter 10: In the small open economy of Gatorland, the domestic demand for widgets is given by P=100-3Q; the domestic supply of widgets is given by P = Q. The world price is $40. Now let the government of Gatorland give a $15 per unit subsidy on each widget exported. What will be the new price and quantity consumed in the domestic market? $25 and 25 units. O $55 and 15 units. $40 and 15 units. $20 and 60 units
Chapter 10: In the small open economy of Gatorland, the domestic demand for widgets is given by P=100-3Q; the domestic supply of widgets is given by P = Q. The world price is $40. Now let the government of Gatorland give a $15 per unit subsidy on each widget exported. What will be the new price and quantity consumed in the domestic market? $25 and 25 units. O $55 and 15 units. $40 and 15 units. $20 and 60 units
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter6: The Economics Of Political Action
Section: Chapter Questions
Problem 15CQ
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![Chapter 10: In the small open economy of Gatorland, the domestic demand for
widgets is given by P-100-3Q; the domestic supply of widgets is given by P = Q.
The world price is $40. Now let the government of Gatorland give a $15 per unit
subsidy on each widget exported. What will be the new price and quantity
consumed in the domestic market?
$25 and 25 units.
O $55 and 15 units.
$40 and 15 units.
O $20 and 60 units](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8728aee7-89a8-4622-85c7-8867d7660ec0%2F408b6850-814c-4a5d-9c47-6e2e78eee47d%2Fbsp99iv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Chapter 10: In the small open economy of Gatorland, the domestic demand for
widgets is given by P-100-3Q; the domestic supply of widgets is given by P = Q.
The world price is $40. Now let the government of Gatorland give a $15 per unit
subsidy on each widget exported. What will be the new price and quantity
consumed in the domestic market?
$25 and 25 units.
O $55 and 15 units.
$40 and 15 units.
O $20 and 60 units
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