A vegetable fiber is traded in a competitive world market, and the world price is $9 per

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A vegetable fiber is traded in a competitive world market, and the world price is $9 per pound. Unlimited quantities are available for import into the United States at this price. The U.S. domestic supply and demand for various price levels are shown as follows:
A vegetable fiber is traded in a competitive world market,

a. What is the equation for demand? What is the equation for supply?
b. At a price of $9, what is the price elasticity of demand? What is it at a price of $12?
c. What is the price elasticity of supply at $9? At $12?
d. In a free market, what will be the U.S. price and level of fiber imports?

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Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

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