Use the following to answer questions 8-9: SCENARIO: PRODUCTION IN NORWAY Suppos

Question

Use the following to answer questions 8-9:

SCENARIO: PRODUCTION IN NORWAY

Suppose that Norway is a small country and currently produces 100,000 board feet of lumber at $600 per 1,000 board feet. Then it begins to trade at the world price of $500 per 1,000 board feet. As a result of trade, Norway's production falls to 50,000 board feet and its consumption increases to 200,000 board feet.

8.

How many board feet of lumber does Norway now import?

A)

250,000 board feet

B)

200,000 board feet

C)

150,000 board feet

D)

100,000 board feet

9.

What is Norway's total gain in consumer surplus once it begins to trade?

A)

$10,000

B)

$15,000

C)

$100,000

D)

$150,000

8.

How many board feet of lumber does Norway now import?

A)

250,000 board feet

B)

200,000 board feet

C)

150,000 board feet

D)

100,000 board feet

Explanation / Answer

8.)))

C) 150,000 board feet

The import = total consumption

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.