The domestic market for calculators is perfectly competitive and is in equilibrium. Domestic demand is given by $Q ^ { d } = 100 - P$ and domestic supply is given by $Q ^ { s } = 4 P$. The world price for calculators is $\$ 10$. How many units of calculators will be imported?
A) 0
B) 10
C) 30
D) 50

Question

Quizplus · Accepted Answer

At the world price of $10, domestic demand is $Q^d = 100 - 10 = 90$ and domestic supply is $Q^s = 4 \times 10 = 40$. The difference, 90 - 40 = 50, is the number of units imported.

The Domestic Market for Calculators Is Perfectly Competitive and Is Qd=100−PQ ^ { d } = 100 - PQd=100−P

The Domestic Market for Calculators Is Perfectly Competitive and Is $Q ^ { d } = 100 - P$