Demand in a domestic market is represented by the curve P = 200 - Q. Supply is represented by P = 20 + 0.5Q. The world price is 120. If this country opens the market to what will the gains from trade be? O $3,600 O $600 $2,400 O $1,200

Demand in a domestic market is represented by the curve P = 200 - Q. Supply is represented by P = 20 + 0.5Q. The world price is 120. If this country opens the market to what will the gains from trade be? O $3,600 O $600 $2,400 O $1,200

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter34: Globalization And Protectionism

Section: Chapter Questions

Problem 14SCQ: Assume a perfectly competitive market and the exporting country is small. Using a demand and supply...

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Question

Demand in a domestic market is represented by the curve P = 200 - Q. Supply is represented by P = 20 + 0.5Q. The world price is 120. If this
country opens the market to what will the gains from trade be?
O $3,600
O $600
$2,400
O $1,200

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