QUESTION 18.1 CHOOSE THE CORRECT ANSWER(S) Figure 18.3 (page 800) depicts the supply curve in the exporting country and the demand curve in the importing country in a market for a traded good. Assume that the good is produced exclusively in the exporting country and consumed exclusively in the importing country. Based on this information, which of the following statements is correct? At quantity 4,000, the price received by the producers is 7.25. At quantity 6,000, the price paid by the consumer is 4. The price gap represents the trade costs, such as transportation costs and trade taxes. Increasing the quantity sold to 6,000 causes the price gap to fall to 2.

QUESTION 18.1 CHOOSE THE CORRECT ANSWER(S) Figure 18.3 (page 800) depicts the supply curve in the exporting country and the demand curve in the importing country in a market for a traded good. Assume that the good is produced exclusively in the exporting country and consumed exclusively in the importing country. Based on this information, which of the following statements is correct? At quantity 4,000, the price received by the producers is 7.25. At quantity 6,000, the price paid by the consumer is 4. The price gap represents the trade costs, such as transportation costs and trade taxes. Increasing the quantity sold to 6,000 causes the price gap to fall to 2.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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