Suppose the domestic supply (Q^S_U.S.) and demand (Q^D_U.S)for bicycles in the United States are given by the following set of equations: $$\begin{array} { l } Q _{^{\mathrm { S } } U . S } = 2 \mathrm { P } \ \mathrm { Q }_{^{\mathrm { D } } U . S } = 200 - 2 \mathrm { P } . \end{array}$$ Demand (Q^D) and supply (Q^S) in the Rest of the World are given by the equations: $$\begin{array} { l } Q ^ { S } = P \ Q ^ { D } = 160 - P . \end{array}$$ Quantities are measured in thousands and price in U.S. dollars. In the absence of international trade, _____ thousand bicycles will be sold in the United States at a per unit price of _____. A)50; $50 B)100; $100 C)150; $50 D)100; $50

Question

Quizplus · Accepted Answer

To find the equilibrium quantity and price in the absence of international trade for the United States, we set the domestic supply equal to the domestic demand and solve for the price (P). $$2P = 200 - 2P$$Solving for P gives us:$$4P = 200$$$$P = 50$$Substituting P = 50 into either the supply or demand equation gives us the equilibrium quantity:$$Q = 2(50) = 100$$Therefore, 100 thousand bicycles will be sold in the United States at a per unit price of $50.

Suppose the Domestic Supply (QSU Demand (QD) and Supply (QS) in the Rest of the the United

Suppose the Domestic Supply (Q^S_{U Demand (Q^D) and Supply (Q^S) in the Rest of the the United}