The demand for shoes in a country is given by D = 60 - 0.5P,where P is the price of a pair of shoes.Supply by domestic producers is given by S = 20 + 0.5P.The world price of a pair of shoes equals $30 and this economy is open to trade.If a quota of 6 pairs is placed on shoe imports,the quantity of shoes produced domestically will change from __________ pairs with no quota to _________ pairs with the quota.
A) 35;40
B) 35;37
C) 40;35
D) 40;37
E) 37;40
Correct Answer:
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