Question

For a small country called boxland, the equation of the domestic demand curve for cardboard is qd = 200 − 2p, where qd represents the domestic quantity of cardboard demanded, in tons, and p represents the price of a ton of cardboard. for boxland, the equation of the domestic supply curve for cardboard is qs = -60 3p, where qs represents the domestic quantity of cardboard supplied, in tons, and p again represents the price of a ton of cardboard. ​ ​

if boxland prohibits international trade in cardboard, then the equilibrium price of a ton of cardboard is
a. $44 and the equilibrium quantity of cardboard is 88 tons.
b. $36 and the equilibrium quantity of cardboard is 74 tons.
c. $52 and the equilibrium quantity of cardboard is 96 tons.
d. $60 and the equilibrium quantity of cardboard is 100 tons.

Answer 1

The equilibrium price of a ton of cardboard in Boxland is $52 and the equilibrium quantity is 96 tons, corresponding to option (c).

Step-by-step explanation:

To find the equilibrium price and quantity of cardboard in Boxland when international trade is prohibited, we equate the domestic demand equation qd = 200 − 2p with the domestic supply equation qs = -60 + 3p. Solving the system of equations:

Set qd = qs to find the equilibrium point.200 - 2p = -60 + 3pCombine like terms: 5p = 260Divide by 5: p = 52Substitute p back into either the original demand or supply equation to find the quantity.qd = 200 - 2(52) = 96 tons.

Therefore, the direct answer in two lines is that the equilibrium price of a ton of cardboard is $52 and the equilibrium quantity is 96 tons, which corresponds to option (c).