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Consider that Thailand and the Philippines are the only countries in the market for laptops. Their domestic market for laptops are described by the following
Consider that Thailand and the Philippines are the only countries in the market for laptops. Their domestic market for laptops are described by the following equations: Thailand Demand: P = 3500 - 40Q and Supply: Q = 500 + 20Q Philippines Demand: P = 2500 - 40Q and Supply: Q = 400 + 20Q where P is in dollars and Q is the quantity of laptops in thousands. Currently there is no trade agreement on laptops between the countries, and these domestic markets are in equilibrium. (Question 5 of 14) Now consider that the two countries enter into a trade agreement (free trade) where the world price of laptops is $1300 As a result of the free trade agreement, what is the quantity of laptops (in thousands) demanded in Thailand? (report your answer at 2 decimal places) Correct Answer: 55 Answer range +/- 0 (55 - 55 )
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