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The Following Table Has Supply and Demand Information on Widgets

Question 225

Essay

The following table has supply and demand information on widgets.Graph the supply and demand curves.Suppose the world price of widgets is $100 and there is free trade.The government imposes a quota of 30 units.What would happen to price?
Price
Quantity Demanded
Quantity Supplied
$0
0
0
$100
80
20
$200
70
40
$300
60
60
$400
50
80
$500
40
100

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The domestic equilibrium price (with no ...

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