Based on figure 1 at equilibrium with free international


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

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Business Economics: Based on figure 1 at equilibrium with free international
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