Scenario 9-1 For a small country called Boxland, the equation of the domestic demand curve for cardboard is QP-200-2P, where QD represents the domestic quantity of cardboard demanded, in tons, and P represents the price of a ton of cardboard. For Boxland, the equation of the domestic supply curve for cardboard is QS = -60+ 3P, where Qs represents the domestic quantity of cardboard supplied, in tons, and Pagain represents the price of a ton of cardboard. efer to Scenario 9-1. Suppose the world price of cardboard is $45. Then Boxland's gains from international trade in cardboard amount to a $122.50 b. $102.50 c. $135.00 d. $88.75

Scenario 9-1 For a small country called Boxland, the equation of the domestic demand curve for cardboard is QP-200-2P, where QD represents the domestic quantity of cardboard demanded, in tons, and P represents the price of a ton of cardboard. For Boxland, the equation of the domestic supply curve for cardboard is QS = -60+ 3P, where Qs represents the domestic quantity of cardboard supplied, in tons, and Pagain represents the price of a ton of cardboard. efer to Scenario 9-1. Suppose the world price of cardboard is $45. Then Boxland's gains from international trade in cardboard amount to a $122.50 b. $102.50 c. $135.00 d. $88.75

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

Problem 3TY

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. During the 1980s most of the global supply of lysine was produced by a Japanese company named Anjinomoto. Lysine is an essential amino acid that is an important livestock feed component. At this time, the US imported most of this global supply of lysine (more than 30,000 tons) to use in livestock feed at a price of $1.65 per pound. The global market for lysine, however, fundamentally changed in 1991 when US-based Archer Daniels Midland (ADM) began producing lysine; a move that doubled worldwide production capacity. Experts conjectured that the marginal cost of producing lysine was approximately $0.70 per pound. Despite ADM's entry into the lysine market, suppose demand remained constant at Q = 208 – 80P (in millions of pounds). Shortly after ADM began producing lysine, the worldwide price dropped to $0.70. By 1993, however, the price of lysine shot back up to $1.65. Give a plausible explanation for what might have happened in the lysine market. Support your answer with appropriate…
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For a small country called Boxland, the equation of the domestic demand curve for cardboard is QD350-2P, where QD represents the domestic quantity of cardboard demanded, in tons, and P represents the price of a ton of cardboard. For Boxland, the equation of the domestic supply curve for cardboard is QS = -60+ 3P, where Q5 represents the domestic quantity of cardboard supplied, in tons, and P again represents the price of a ton of cardboard. Refer to Scenario 9-1. Suppose the world price of cardboard is $51. Then Boxland's gains from international trade in cardboard amount to A) $1,201.25. B) $4,805.00. C) $2,402.50. D) $9,486.00.
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