Let the world price of bicycles be $200. The supply of and demand for bicycles in the U.S. is given below. If the U.S. were to impose a quota of 36 million bicycles per year, what would be the domestic price, production, and purchases of bicycles? Explain your answer. Quantity Supplied 25 21 18 15 12 6 5 Price Per Bike $450 $400 $350 $300 $250 $200 $150 BICYCLES (MILLIONS OF BIKES PER YEAR) Quantity Demanded 17 21 26 30 32 40 47

Let the world price of bicycles be $200. The supply of and demand for bicycles in the U.S. is given below. If the U.S. were to impose a quota of 36 million bicycles per year, what would be the domestic price, production, and purchases of bicycles? Explain your answer. Quantity Supplied 25 21 18 15 12 6 5 Price Per Bike $450 $400 $350 $300 $250 $200 $150 BICYCLES (MILLIONS OF BIKES PER YEAR) Quantity Demanded 17 21 26 30 32 40 47

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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