Tutorial 1 Questions EC306 PDF
Tutorial 1 Questions EC306 PDF
3. Refer to Figure 2.1 below. At a price of $70, the consumer surplus equals:
Price ($/unit)
150
Supply
120
70
40
Demand
10 Quantity
0 100 200 300 (thousands)
a. $6,000,000.
b. $8,000,000.
c. $5,000,000.
d. $10,000,000.
4. Refer to Figure 2.1 below. At a price of $70, the producer surplus equals:
Price ($/unit)
150
Supply
120
70
40
Demand
10 Quantity
0 100 200 300 (thousands)
a. $6,000,000.
b. $8,000,000.
c. $15,000,000.
d. $30,000,000.
6. Suppose the domestic supply (QS) and demand (QD) for skateboards in the United States are
given by the following set of equations:
QS = –60 + 3P
QD = 390 – 2P
In the absence of international trade in skateboards, what will be the equilibrium price of
skateboards in the United States?
a. $66
b. $90
c. $45
d. $150
Topic: Two National Markets and the Opening of Trade
7. Suppose the domestic supply (QS) and demand (QD) for skateboards in the United States are
given by the following set of equations:
QS = –60 + 3P
QD = 390 – 2P
In the absence of international trade in skateboards how many skateboards will be sold in the
United States?
a. 138
b. 258
c. 210
d. 930
8. Suppose the domestic supply (QS) and demand (QD) for skateboards in the United States are
given by the following set of equations:
QS = –60 + 3P
QD = 390 – 2P
Calculate the change in producer surplus when the United States engages in free trade and
imports skateboards from the rest of the world at a per unit price of $75.
a. +$2,812.50.
b. -$2,812.50.
c. +$3,375.
d. -$3,375.
Question 13: The equation for the demand curve for writing paper in Belgium. Questions a-c.
The end