If Utopia has a closed economy, the price of tile is $________ per case, and if it has an open economy the price of tile is $________ per case.

Question

Quizplus · Accepted Answer

In a closed economy, the domestic price is determined by the intersection of domestic supply and domestic demand, which in this example occurs at a price of $20 per case. In an open economy, the domestic price becomes the world price, which in this example is $15 per case.

If Utopia Has a Closed Economy, the Price of Tile