Table 34-4

-Table 34-4 presents the demand and supply schedules for television sets in Japan and the United States.If there is no trade between these countries, what are the equilibrium price and quantity in Japan?

Question

Table 34-4
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-Table 34-4 presents the demand and supply schedules for television sets in Japan and the United States.If there is no trade between these countries, what are the equilibrium price and quantity in Japan?

Quizplus · Accepted Answer

To find the equilibrium price and quantity in Japan, we need to look at the demand and supply schedules for Japan only. At a price of $100, Japan demands 150 units of television sets and supplies 50 units. At a price of $200, Japan demands 100 units and supplies 100 units. At a price of $300, Japan demands 70 units and supplies 150 units. At a price of $400, Japan demands 50 units and supplies 200 units.

The equilibrium price and quantity occur where quantity demanded equals quantity supplied. In this case, it occurs at a price of $300 and a quantity of 70. Therefore, the answer is C, P = $300, Q = 70.

Table 34-4 ​

Table 34-4