the tablet below shows the demand and supply for mental in two countries: use th
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the tablet below shows the demand and supply for mental in two countries: use the information in the table provided to answer the questions West Texas A & M Univer x .com/ibiscms/mod/ibis/view.php?id-1816665 10/26/2015 09:35 AM o/100 Gradeb The table below shows the demand and supply for metal in two countries: Lbya and Talwan. Use the information in the table provided to answer the questions below Price (5) per pound b) of metal Price Libya Quantity (lb) Demanded() Supplied (b Ubya Quantity Talwan QuantityTawan Quantity Supplied (b) 180 160 130 125 115 350 410 430 180 200 6 240 260 280 490 105 Taiwan imposes an import quota on metal from Libya, limiting Using free trade as the starting point, how will this cuota afect consumers and producers in Libya? price of metal in Taiwan? The price will be the same as free trade levels, but lower than when no trade existed. Neither consumers, nor producers, O will benefit. O Only producers will benefit, O Only consumers will beneft, The price will be higher than free trade levels, but the same as when no trade existed consumers will not benefit o The price will be higher than free trade levels but lower than when no trade existed will not benefit Consumers and producers will both o The price will be lower than free trade levels, but higher than when no trade existed OPrevius ®Gveup & View Solution Check AnswerNext €1Et_ Hint about us careers partners privacy policy terms of use contacExplanation / Answer
1.
Correct Answer:
Price will be higher than free trade levels but lower than when no trade existed.
Explanation:
Putting in import quota will promote domestic suppliers and import will be limited. It will cause demand to be more than supply. Supply will also not be perfectly elastic in nature. In such circumstance, price will rise but it will be less than the prices when there is no existence of trade.
2.
Correct Answer:
Only consumers will benefit, producers will not benefit.
Explanation:
Limitation on import in one Taiwan will cause limit of export from Libya. Thus, all production in Libya has to be consumed in in Libya only after the limited export. It will cause supply to be higher than demand and price will come down. Thus, consumers will be better off but producers will suffer.
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