Suppose the domestic supply (Q^S) and demand (Q^D)for MP3 players in the United States are given by the following set of equations: $$\begin{array} { l } Q ^ { S } = - 25 + 10 P \ Q ^ { D } = 875 - 5 P \end{array}$$ If the U.S. engages in free trade and the international price of MP3 players is $50, it would import _____ MP3 players from the rest of the world. A)150 B)250 C)475 D)225

Question

Quizplus · Accepted Answer

At the international price of $50, domestic supply is 275 units (Q^S = -25 + 10 * 50 = 275) and domestic demand is 325 units (Q^D = 875 - 5 * 50 = 325). Therefore, the U.S. would import 50 units (325 - 275 = 50) from the rest of the world.

Suppose the Domestic Supply (QS) and Demand (QD)for MP3 Players QS=−25+10PQD=875−5P\begin{array} { l } Q ^ { S } = - 25 + 10 P \\Q ^ { D } = 875 - 5 P\end{array}QS=−25+10PQD=875−5P​

Suppose the Domestic Supply (Q^S) and Demand (Q^D)for MP3 Players $\begin{array} { l } Q ^ { S } = - 25 + 10 P \\Q ^ { D } = 875 - 5 P\end{array}$