Equilibrium with free international trade in the market

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Reference no: EM13734464

1. Based on Figure 1, at equilibrium with free international trade in the market for calculators the price per calculator in Mexico is the world price P = $3.50. When the price is P=$3.50 what is the quantity supplied by Mexician producers, Qs and what is the quantity demanded by Mexican consumers, Qd?

A) Qs = 10 and Qd = 80

B) Qs = 10 and Qd = 110

C) Qs = 110 and Qd = 110

D) Qs = 60 and Qd = 60

2. Based on Figure 1, at equilibrium with free international trade in the market for calculators the price per calculator in Mexico is the world price P = $3.50. At P=$3.50 Mexico's producer surplus equals the area

A) c2 + b1 + b2

B) c4

C) a1 + a2 + a3 + a4

D) c1 + c2 + c3 + c4

3. Based on Figure 1, at equilibrium with free international trade in the market for calculators the price per calculator in Mexico is the world price P = $3.50. At P=$3.50 Mexico's consumer surplus equals the area

A) a1 + a2 + a3 + a4 + b1 + b2 + c1 + c2 + c3

B) a1 + a2 + a3 + a4

C) c1+ c2 + c3 + c4

D) c1+ c2 + c3 + c4 + b1 + b2

4. Based on Figure 1 if the Mexcian government imposes a per-unit tariff of $2.5 on calculators, the total quantity of calculators consumed by Mexicans (domestically produced plus imports) at equilibrium with international trade is

A) 20 calculators

B) 40 calculators

C) 80 calculators

D) 110 calculators

Reference no: EM13734464

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