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Trade and welfare slide 1 S D Q P 50 P* = $3.50 The diagram below shows the world market for tin. TIN QUANTITY( 1000 LBS) 1 0 30 Price Ceiling P = $4.00 Price Floor P = $3.00 70 120 EXCESS DEMAND 50 D’ BUFFER STOCK SELLS 50 EXCESS SUPPLY 20 BUFFER STOCK BUYS 20

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EXCESS DEMAND 50. BUFFER STOCK SELLS 50. EXCESS SUPPLY 20. BUFFER STOCK BUYS 20. P = $4.00. Price Ceiling. P = $3.00. Price Floor. D’. 10. 30. 70. 120. The diagram below shows the world market for tin. P. S. P* = $3.50. D. Q. 50. TIN QUANTITY( 1000 LBS). - PowerPoint PPT Presentation

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Page 1: P* = $3.50

Trade and welfare slide 1

S

D

Q

P

50

P* = $3.50

The diagram below shows the world market for tin.

TIN QUANTITY( 1000 LBS)

10 30

Price CeilingP = $4.00

Price FloorP = $3.00

70 120

EXCESS DEMAND50

D’

BUFFER STOCKSELLS 50

EXCESS SUPPLY20

BUFFER STOCKBUYS 20

Internet Cafe_ Cafesuite 3.50

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