3/25/22, 10:55 PM Assignment Print View b. Use the graph above to indicate the world price, the new domestic quantity supplied (Qs), and the new domestic quantity demanded (Qd). Instructions: Use the tool provided "Pworld" to draw a horizontal world price such that the first point touches the vertical axis. Use the tools provided "Qs" and "Qd" to indicate the domestic quantity supplied and domestic quantity demanded. c. At the world price of $60 per barrel, this small country will export million barrels of wine. d. A result of this country opening its wine market to international trade is that: Oboth domestic consumers and domestic producers benefit. Oboth domestic consumers and domestic producers lose. Odomestic consumers benefit while domestic producers lose. Odomestic producers benefit while domestic consumers lose. References Learning Objective: Illustrate the small- country model in a supply and demand diagram. Graphing Difficulty: 2 Medium https://ezto.mheducation.com/hm.tpx?todo=c15SinglePrintView&singleQuestionNo=5.&postSubmissionView=13252717296651441&wid=13252718466068729&rol... 2/2
3/25/22, 10:55 PM Assignment Print View b. Use the graph above to indicate the world price, the new domestic quantity supplied (Qs), and the new domestic quantity demanded (Qd). Instructions: Use the tool provided "Pworld" to draw a horizontal world price such that the first point touches the vertical axis. Use the tools provided "Qs" and "Qd" to indicate the domestic quantity supplied and domestic quantity demanded. c. At the world price of $60 per barrel, this small country will export million barrels of wine. d. A result of this country opening its wine market to international trade is that: Oboth domestic consumers and domestic producers benefit. Oboth domestic consumers and domestic producers lose. Odomestic consumers benefit while domestic producers lose. Odomestic producers benefit while domestic consumers lose. References Learning Objective: Illustrate the small- country model in a supply and demand diagram. Graphing Difficulty: 2 Medium https://ezto.mheducation.com/hm.tpx?todo=c15SinglePrintView&singleQuestionNo=5.&postSubmissionView=13252717296651441&wid=13252718466068729&rol... 2/2
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
100%

Transcribed Image Text:3/25/22, 10:55 PM
Assignment Print View
b. Use the graph above to indicate the world price, the new domestic quantity supplied (Q), and the
new domestic quantity demanded (Qd).
Instructions: Use the tool provided "Pworld" to draw a horizontal world price such that the first point
touches the vertical axis. Use the tools provided "Qs" and "Q," to indicate the domestic quantity
supplied and domestic quantity demanded.
c. At the world price of $60 per barrel, this small country will export
million
barrels of wine.
d. A result of this country opening its wine market to international trade is that:
Oboth domestic consumers and domestic producers benefit.
Oboth domestic consumers and domestic producers lose.
domestic consumers benefit while domestic producers lose.
domestic producers benefit while domestic consumers lose.
References
Learning Objective: Illustrate the small-
country model in a supply and demand
diagram.
Graphing
Difficulty: 2 Medium
https://ezto.mheducation.com/hm.tpx?todo=c15SinglePrintView&singleQuestionNo=5.&postSubmissionView=13252717296651441&wid=13252718466068729&rol...
2/2

Transcribed Image Text:3/25/22, 10:55 PM
Assignment Print View
5.
The graph below shows a small country that produces wine, with no international trade, existing in a
state of autarky.
Market for Wine
80
Tools
75
S
70
--
65
Pworld
Qd
60
55
--O
50
45
Qs
40
35
30
25
20
15
10
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Quantity (millions of barrels)
a. What is the initial market price and quantity of wine traded in equilibrium?
Pe: $|
per barrel
Qe:
million barrels
Now suppose this small country opens its market to international trade. Suppose the world price of
wine is $60 per barrel.
https://ezto.mheducation.com/hm.tpx?todo=c15SinglePrintView&singleQuestionNo=5.&postSubmissionView=13252717296651441&wid=13252718466068729&rol...
1/2
Price (dollars per barrel)
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