$$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Quantity Demanded } \
\text { Domestically }
\end{array} & \text { Price } & \begin{array} { c }
\text { Quantity Supplied } \
\text { Domestically }
\end{array} \
\hline 1,400 & \$ 10 & 2,200 \
\hline 1,600 & 9 & 2,000 \
\hline 1,800 & 8 & 1,800 \
\hline 2,000 & 7 & 1,600 \
\hline 2,200 & 6 & 1,400 \
\hline 2,400 & 5 & 1,200 \
\hline
\end{array}$$ Refer to the accompanying table for a certain product's market in Econland. If the world price of the product were $6 and an import quota of 400 units were imposed on the product, then the
Equilibrium price in Econland would be

Question

$$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Quantity Demanded } \
\text { Domestically }
\end{array} & \text { Price } & \begin{array} { c } 
\text { Quantity Supplied } \
\text { Domestically }
\end{array} \
\hline 1,400 & \$ 10 & 2,200 \
\hline 1,600 & 9 & 2,000 \
\hline 1,800 & 8 & 1,800 \
\hline 2,000 & 7 & 1,600 \
\hline 2,200 & 6 & 1,400 \
\hline 2,400 & 5 & 1,200 \
\hline
\end{array}$$ Refer to the accompanying table for a certain product's market in Econland. If the world price of the product were $6 and an import quota of 400 units were imposed on the product, then the
Equilibrium price in Econland would be

Quizplus · Accepted Answer

At a world price of $6, the domestic quantity supplied in Econland will be 1,400 units, obtained by reading off the $6 price level from the column labeled "Price." If the import quota of 400 units is imposed, this quantity of 1,400 is added to the quota to give a total quantity available in Econland of 1,800 units. At the quantity of 1,800 units (the quantity available in Econland), the demand price is \$8. Therefore, the equilibrium price in Econland would be \$7 (the world price plus the \$1 per-unit tariff), and the total quantity available in Econland would be 2,000 units (the domestic quantity supplied plus the quota).

Refer to the Accompanying Table for a Certain Product's Market