Question

I know the answers to these but I need an explanation. Please draw on the graph. For 31,32 and 33

Figure CPS. The US Textile Market Suppose D is market demand and S is the market supply curve of domestic producers. After imports are allowed, foreign producers shift the market supply to S' P 25 20 15 10 5 60 Q 10 20 30 40 50 See Figure CPS. Before the foreign producers enter the producer surplus of domestic producers in the US market is 31. $100 b. $400 $50 d. $225 а. с. 32. See Figure CPS. The positions of the supply curves S and S' imply that some of the foreign firms than any of the domestic firms. are less competitive а. b. are larger have lower costs с. charge higher prices d. See Figure CPS. After the foreign producers enter, the producer surplus of domestic producers decreases by $25 b. decreases by $75 increases by $75. d. increases by $25. 33. а. с.

Answer 1

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