Use the following table for a certain product’s market in Marketopia to answer t
ID: 1128041 • Letter: U
Question
Use the following table for a certain product’s market in Marketopia to answer the next question.
Quantity Demanded Domestically
Price
Quantity Supplied Domestically
1,400
$10
2,200
1,600
9
2,000
1,800
8
1,800
2,000
7
1,600
2,200
6
1,400
2,400
5
1,200
If the world price for this product is $6, then Marketopia would import
Quantity Demanded Domestically
Price
Quantity Supplied Domestically
1,400
$10
2,200
1,600
9
2,000
1,800
8
1,800
2,000
7
1,600
2,200
6
1,400
2,400
5
1,200
Explanation / Answer
Answer
at the world price
Qd=2200
and
Qs=1400
the import=Qd-Qs=2200-1400=800
The economy will import 800 units