5. The price of most prescription drugs is significantly lower in Canada than in the United States. For parts a.)-d.), draw a supply-demand graph to show whether the stated claim COULD explain the price difference ( consider each part independently; for each part, assume any other factor (except the given claim) is the same between Canada and the U.S.; on most of the graphs, you'll have one curve for Canada, one curve for the U.S., and one representing both: e.g., you might have separate D Curves for the two countries, but only one S Curve, representing the same supply conditions in both ). (1 point each) a.) Tougher regulation in the U.S. makes it more difficult (i.e., more expensive) to get a new drug approved. b.) Tougher regulation in Canada makes it more difficult ( i.e., more expensive) to get a new drug approved. c.) Average consumer income in Canada is lower than average consumer income in the U.S. d.) Canada has implemented a system of price ceilings on drugs.

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1. Please explain what would happen to the market-clearing prices and quantities of e- cigarettes in the U.S. under the following hypothetical scenarios. a. Widespread reporting of e-cigarette or vaping use-associated lung injury (EVALI) increased the health risk concerns about vaping among existing e-cigarette users.

Suppose that the world price of oil is $70 per barrel and that the United States can buy all the oil it wants at this price. Suppose also that the demand and supply schedules for oil in the United Sta follows: Price ($ per Barrel) 55 60 65 70 75 U.S. Quantity Demanded 26 24 22 20 18 U.S. Quantity Supplied 14 16 18 20 22 Now suppose that the United States allows no oil imports. The equilibrium price in the United states is $ 70 per barrel and the equilibrium quantity is 20 million barrels. If the United States imposed a price ceiling of $65 per barrel on the oil market and prohibited imports, there would be an of million barrels of oil. excess supply excess demand

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2. Suppose cheap mountain bikes are made in both the US and the Philippines. The supply and demand for each market are given by: US Qd = 9110 – P Qs = 100P – 2000 Philippines Qа 3D 100— 0.5P Q 3 Р- 20 Find the autarky equilibrium price and quantity sold in each country. b. Now suppose the two countries engage in international trade with each other. Find the combined supply and demand equations. Now find the trade price and quantity (world total quantity and imports/exports). Comment on the trade price and the relative size of the two markets. d. а. с. In general, which country will gain relatively more by engaging in international trade. Explain briefly.

Submi Question 15 of 20 > The effects of a tariff are O identical to the effects of a quota, except that the price of the good is higher. O reduced quantity supplied overall, reduced quantity supplied by domestic producers, and a lower price. O reduced quantity supplied overall, decreased quantity supplied by domestic producers, and a lower price. O reduced quantity supplied overall, increased quantity supplied by domestic producers, and a higher price. Activate Windows Hi LAPTOP LOGIN

3. Suppose you are a manufacturer of milk and it produces 900 liters and sells it for $ 15 Lt and due to social development policies, the government decides that the price of the good should be lowered by one peso, therefore it should be sold at $ 14 per liter, with which people will have more access to buy it and will influence an increase in the quantity demanded, now having to produce 1,300 liters of the good. a. Determine the elasticity of demand.b. Determine the degree of Lerner's monopoly power.

1. The United States currently imports all of its coffee. The annual demand for coffee by U.S. consumers is given by the demand curve Q = 250 – 10P, where Q is quantity (in millions of pounds) and P is the market price per pound of coffee.  World producers can harvest and ship coffee to U.S. distributors at a constant marginal (= average) cost of $8 per pound. U.S. distributors can in turn distribute coffee for a constant $2 per pound. The U.S. coffee market is competitive. Congress is considering a tariff on coffee imports of $2 per pound.   a. If there is no tariff, how much do consumers pay for a pound of coffee? What is the quantity demanded? b. If the tariff is imposed, how much will consumers pay for a pound of coffee? What is the quantity demanded? c. Calculate the lost consumer surplus. d. Calculate the tax revenue collected by the government. e. Does the tariff result in a net gain or a net loss to society as a whole?

Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. PRICE (Dollars per ton) 1255 1200 1145 €1090 1035 980 925 870 815 760 705 0 I Supply Demand A tariff set at this level would raise $ P. W 40 80 120 180 200 240 280 320 380 400 QUANTITY (Thousands of tons of oranges) Graph Input Tool Market for Oranges in Jordan Price (Dollars per ton) Domestic Demand (Thousands of tons of oranges) If Jordan is open to international trade of oranges without any restrictions, it will import full value for your answer, accounting for the horizontal axis units.) 1,090 in revenue for the Jordanian government. 120 Domestic Supply (Thousands of tons of oranges) Suppose the Jordanian government wants to reduce imports to exactly 80,000 tons of oranges to help domestic producers. A tariff of S will…