Scenario 9-1

For a small country called Boxland, the equation of the domestic demand curve for cardboard is Q D = 210 − 2P, where Q D represents the domestic quantity of cardboard demanded, in tons, and P represents the price of a ton of cardboard. For Boxland, the equation of the domestic supply curve for cardboard is Q S = -90 + 3P, where Q S represents the domestic quantity of cardboard supplied, in tons, and P again represents the price of a ton of cardboard.
-Refer to Scenario 9-1. If Boxland prohibits international trade in cardboard, then the equilibrium price of a ton of cardboard is

Question

Scenario 9-1
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For a small country called Boxland, the equation of the domestic demand curve for cardboard is Q D = 210 − 2P, where Q D represents the domestic quantity of cardboard demanded, in tons, and P represents the price of a ton of cardboard. For Boxland, the equation of the domestic supply curve for cardboard is Q S = -90 + 3P, where Q S represents the domestic quantity of cardboard supplied, in tons, and P again represents the price of a ton of cardboard.
-Refer to Scenario 9-1. If Boxland prohibits international trade in cardboard, then the equilibrium price of a ton of cardboard is

Quizplus · Accepted Answer

To find the equilibrium price and quantity, set the demand equation equal to the supply equation: 210 - 2P = -90 + 3P. Solving for P gives P = 60. Substitute P = 60 back into either equation to find the quantity: 210 - 2(60) = 90 or -90 + 3(60) = 90. Thus, the equilibrium price is $60 and the equilibrium quantity is 90 tons.

Scenario 9-1 ​

Scenario 9-1