Answered: Suppose that the world price for shoes…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 7P

See similar textbooks

Related questions

Question

You are given the following points on the Supply and Demand Curves for shoes within Country L ( i.e., D for L’s consumers , S for L’s suppliers):

Price Qty. Demanded Qty. Supplied

$ 90 60,000 180,000

$ 75 75,000 150,000

$ 70 80,000 140,000

$ 65 85,000 130,000

$ 62.50 87,500 125,000

$ 60 90,000 120,000

$ 50 100,000 100,000

$ 45 105,000 90,000

$ 42.50 107,500 85,000

$ 37.50 112,500 75,000

$ 30 120,000 60,000

$ 25 125,000 50,000

Suppose that the world price for shoes ( which would be the price if Country L trades with the rest of the world) is equal to $ 75.

What is the CHANGE in total surplus to Country L ( after trade) on Unit 85,000 ( i.e., find the difference between the total surplus if Country L does trade and the total surplus if Country L does not trade)?

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions