Consider the market for widgets. Widgets are produced in the United States, unless producers aren’t willing to meet the quantity demanded at a particular price. In that case, widgets are imported. Suppose that the price with free trade is $7. If lawmakers want to ensure that U. S. widget producers can sell at least 8,000 widgets, what might they do?

Price

Quantity Demand

Quantity SuppliedDomestically

Quantity Imported

$613,0002,0008,000
$712,0004,0008,000
$811,0006,0005,000
$910,0008,0002,000
$109,0009,0000
$118,00010,0000
impose a tax on imported widgets

provide a subsidy for imported widgets

impose an import quota

Walmart and target are the only stores in a remote town that currently stock and sell the playstation 5 video game console. managers at both stores are simultaneously deciding whether to charge a price of $1,000 or $1,500 for each console. if both stores charge $1,000, they earn a profit of $100,000 each. if both stores charge $1,500, they earn a profit of $200,000 each. if one store charges $1,000 and the other store charges $1,500, the store that charges $1,000 earns a profit of $250,000 and the firm that charges $1,500 earns a profit of $50,000. if walmart and target they can both charge $1,500 and earn the highest combined profit available. engage in spirited price competition collude with each other privately undercut each other after making an agreement compete with each other only with regard to price and not quantity compete with each other only with regard to quantity and not price