The demand for microwaves in a certain country is given by: D = 8,000 -30P, where P is the price of a microwave. Supply by domestic microwave producers is: S = 4,000 + 10P. If this economy opens to trade while the world price of a microwave is $50, how many microwaves will be imported or exported?

Question

Quizplus · Accepted Answer

at a price of $50, the quantity demanded is 8,000 - 30(50)= 6,500, and the quantity supplied is 4,000 + 10(50)= 500 = 4,500, implying that the country will import 2,000 microwaves.

The Demand for Microwaves in a Certain Country Is Given