Example 9.5 describes the effects of the sugar quota. The supply equation is Qs = -7.48 + 0.84P, and the demand equation is Qp = 26.7 - 0.23P, where the price is in cents and quantities are in billions of pounds. The world price is 12 cents per pound. In 2005, imports were limited to 5.3 billion pounds, which pushed the domestic price to 27 cents per pound. a. What would be the new U.S. domestic price? (Round your response to two decimal places.)

Example 9.5 describes the effects of the sugar quota. The supply equation is Qs = -7.48 + 0.84P, and the demand equation is Qp = 26.7 - 0.23P, where the price is in cents and quantities are in billions of pounds. The world price is 12 cents per pound. In 2005, imports were limited to 5.3 billion pounds, which pushed the domestic price to 27 cents per pound. a. What would be the new U.S. domestic price? (Round your response to two decimal places.)

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter18: International Trade And Finance

Section: Chapter Questions

Problem 18SQ

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