Economics
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Drag and Drop Activity
Examine figure 1 and select the correct terms to complete the cloze passage.
| OP1 | Sd1Sd1 | government | imports | subsidy | domestic
The ___________________ supply and demand curves for
hockey sticks are SdSd and DdDd.
The international market price for hockey sticks is
___________________ and at this price consumers demand
0Q3. Domestic producers will supply 0Q1
to the market and ___________________ will be
Q1Q3
If the ___________________ provides a subsidy of AB per unit to the industry production costs are reduced and the supply curve moves for SdSd to ___________________.
Domestic producers of hockey sticks are now willing to supply 0Q2 to the market at a price of 0P1. As a result of the ___________________ imports will decrease from Q1Q3 to Q2Q3
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