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  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

The equilibrium price and quantity in Japan can be found at the point where the quantity demanded equals the quantity supplied. At a price of $300, the quantity demanded in Japan is 70, which is equal to the quantity supplied from Japanese producers. Therefore, the equilibrium price and quantity in Japan is P = $300 and Q = 70.

Table 34-4 Table 34-4 Presents the Demand and Supply