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 = 4P. The world price for calculators is $10. How many units of calculators will be imported? A) 0 B) 10 C) 30 D) 50

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At the world price of $10, domestic demand is 90 units (Q^d = 100 - 10) and domestic supply is 40 units (Q^s = 4*10). Therefore, 50 units will be imported to meet the excess demand.

The Domestic Market for Calculators Is Perfectly Competitive and Is