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23 October, 02:21

Refer to the table above for a certain product's market in econland. if the world price of the product were $6 and an import quota of 400 units were imposed on the product, then the equilibrium price in econland would be:

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  1. 23 October, 02:48
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    The answer is not $6 and the total quantity available in Econland would be 2,200 units. Refer to the above graph which shows the import demand and export supply curves for two nations that produce a product. In this two-nation model, the equilibrium world price and quantity will be C and Q2.
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