1.16 The demand for cars in a certain country is given by: D = 15,000 - 0.3P, where P is the price 5,000+ 0.2P. Suppose this economy opens = of a car. Supply by domestic car producers is: S to trade, and the world price of a car is $13,000. If the government imposes a quota allowing 3,000 cars to be imported, then the domestic price of cars will be A. $6,000 B. $8,000 C. $10,000 D. $14,000

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ISBN:9781337617383
Author:Roger A. Arnold
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Chapter33: International Trade
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1.16 The demand for cars in a certain country is given by: D = 15,000 - 0.3P, where P is the price
5,000+ 0.2P. Suppose this economy opens
of a car. Supply by domestic car producers is: S =
to trade, and the world price of a car is $13,000. If the government imposes a quota allowing
3,000 cars to be imported, then the domestic price of cars will be
A. $6,000
B. $8,000
C. $10,000
D. $14,000
Transcribed Image Text:1.16 The demand for cars in a certain country is given by: D = 15,000 - 0.3P, where P is the price 5,000+ 0.2P. Suppose this economy opens of a car. Supply by domestic car producers is: S = to trade, and the world price of a car is $13,000. If the government imposes a quota allowing 3,000 cars to be imported, then the domestic price of cars will be A. $6,000 B. $8,000 C. $10,000 D. $14,000
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