Astelia is currently a closed economy. In the market for large mirrors, the domestic equilibrium price and quantity are $500 per mirror and 20,000 mirrors per year. ItAstelia became an open economy and the world price in the market was $350 per mirror, who would be the winners and losers trom opening the economy? [Assume the necessary assumptions for perfect competition) O A. Domestic producers are winners, domestic consumers are losers. O B. Ambiguous effect on domestic prod ucers, domestic consumers are winners. 0 C. Domestic producers are losers, ambiguous etfect on domestic consumers. O D. Domestic producers are losers, domestic consumers are winners. 0 E. Domestic producers and consumers are losers, the Government is a winner. Consider the graph below, which represents an economy open to international trade. Given that A = 125, B = 175, C' = 225 and C" = 225 and that the world price is 5175, how much is the producer surplus? You are at lkea and you want to buy some dinner plates. The table below reports your marginal utility form each additional dinner plate you purchase. Dinner plate Marginal sets Utility i 544 408 272 l 36 0.8 'l 0.4 \"-Jmu'thLMN On the other hand, you have a marginal utility of 1 from consuming a Swedish meatball, which costs $0.50. Consider the following prices of dinner plates: $0.4, $274. What quantities of dinner plates maximise your utility under these two scenarios? 0 a. 4; 2. O b. 6:0. 0 c. 5; 0. Q d. None of the other answers 0 e. 5; 2. Suppose the labour market is summarised as: Demand: P : 100 - Q Supply: P = Q The government imposes a minimum wage. However, consumers (firms) are unsurprisingly unhappy with the increase in wages and are negotiating with labour unions to return to the equilibrium wage. The union will agree to this if rms offer a lump sum transfer to producers (workers) equivalent to the maximum firms are willing to give, $1178. How much was the minimum wage? O a. $106 0 b.$94 O c. $88 0 d.$80 Mark has diabetes and his life depends on taking his daily shots of insulin. Which of the following statements is true? Select one: C) A. Mark's demand for insulin is likely to be elastic. O B. None of these. 0 C. Insulin is likely to be an inferior good. 0 D. Insulin is likely to be a Giflen good. O E. Mark's demand for insulin is likely to be inelastic