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The Demand for DVD Players in a Country Is Given

Question 31

Multiple Choice

The demand for DVD players in a country is given by D = 300 - 0.2P,where P is the price of a DVD player.Supply by domestic producers is given by S = 100 + 0.8P.The world price of a DVD player equals $100 and this economy is open to trade.If a tariff of $50 per unit is placed on DVD player imports,the quantity of DVD players produced domestically will change from _________ with no tariff to _________ with the tariff.


A) 180;220
B) 180;260
C) 220;180
D) 220;260
E) 260;180

Correct Answer:

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