For a small country called Boxland, the equation of the domestic demand curve for cardboard is
where represents the domestic quantity of cardboard demanded, in tons, and represents the price of a ton of cardboard.
For Boxland, the equation of the domestic supply curve for cardboard is
where represents the domestic quantity of cardboard supplied, in tons, and again represents the price of a ton of cardboard.
-Refer to Scenario 9-2.If Boxland prohibits international trade in cardboard,then the equilibrium price of a ton of cardboard is
A) 36 dollars and the equilibrium quantity of cardboard is 74 tons.
B) 44 dollars and the equilibrium quantity of cardboard is 88 tons.
C) 52 dollars and the equilibrium quantity of cardboard is 96 tons.
D) 60 dollars and the equilibrium quantity of cardboard is 100 tons.
Correct Answer:
Verified
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