6. The accompanying table indicates the U.S. domesticdemand schedule and domestic supply schedule forcommercial jet airplanes. Suppose that the world priceof a commercial jet airplane is $100 million.Price of jet Quantity of jets(millions)demanded$120100110150100200€1090 11250300350400828598070605045040500Quantity ofjets supplied1,000900800700600500400300200a. In autarky, how many commercial jet airplanes doesthe United States produce, and at what price arethey bought and sold?b. With trade, what will the price for commercialjet airplanes be? Will the United States import orexport airplanes? How many?

Introduction The quantity of a commodity demanded depends on the price of that commodity and potentially on many other factors, such as the prices of other commodities, the incomes and preferences of consumers, and seasonal effects. The quantity of a commodity that is supplied in the market depends not only on the price obtainable for the commodity but also on potentially many other factors, such as the prices of substitute products, the production technology, and the availability and cost of labour and other factors of production. 1. Equilibrium price is $60million because QD=QS Production = consumption So, At this equilibrium price, demand and supply both are 400. Therefore, At autarky, the domestic demand and the domestic supply equals when the price is $60 million. And the US produces 400 commercial jet airplanes and they are bought and sold at the price point of $60 million. 2.Price would be equal to world price i.e. $100 million. Exports QS-QD 800-200= 600 Thus, When the price is $100 million, the domestic demand in the USA is of 200 commercial jet airplanes and domestic supply is of 800 commercial jet airplanes. So, the USA will export the additional 800-200 m jet airplanes.

Business

Economics

6. The accompanying table indicates the U.S. domestic demand schedule and domestic supply schedule for commercial jet airplanes. Suppose that the world price of a commercial jet airplane is $100 million. Price of jet Quantity of jets (millions) demanded $120 100 110 150 100 200 €1090 11 250 300 350 400 450 500 80 70 60 50 40 Quantity of jets supplied 1,000 900 800 700 600 500 400 300 200

6. The accompanying table indicates the U.S. domestic demand schedule and domestic supply schedule for commercial jet airplanes. Suppose that the world price of a commercial jet airplane is $100 million. Price of jet Quantity of jets (millions) demanded $120 100 110 150 100 200 €1090 11 250 300 350 400 450 500 80 70 60 50 40 Quantity of jets supplied 1,000 900 800 700 600 500 400 300 200

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

3. A fruit is traded in a competitive world market, and the world price is $10 per pound. The consumer quantity in this price is 100 million tonnes. One year later, overall fruit prices increase to $15 and total consumer level fall to 90 million tonnes. Under this circumstance, what is the price elasticity of demand fruit?
A5
3
Domestic Supply $10 $8 AIB D E $6 World P Domestic D 20 30 35 40 50 Q (millions of towels) Consider the economy depicted in the graph and assume there is international trade. If the government imposed a tariff of $2, what will its total revenue be? O D+G O E+F O None of the above O A+B
Price of Baskets $14 10 7 1 0 $210 $245 $420 40 $455 70 105 Domestic Supply Refer to Figure 9-1. Without trade, what would consumer surplus be? World Price Domestic Demand Quantity of Baskets
3. Using the graph to the right, suppose the country opens up to international trade, the world price is $40, and the government institutes a $10 tariff on each unit imported. What is the quantity demanded, quantity produced domestically, quantity imported from abroad, consumer surplus, producer surplus, tariff revenue, and deadweight loss? Price 0 10 20 30 40 50 60 70 80 90 100 0 50 Comestic Supply Domestic Demand 100 150 200 250 300 350 400 450 Quantity 500
Consider the market below for a large country. Focus on the equilibrium when the country imposes a tariff. How large is the tariff? Price $25 $20 $15 10 20 30 40 Quantity Select one: O a. $20 O b. $25 O c. $10 O d. $15
Plz give correct explanation
4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for maize in Burundi. Burundi is open to international trade of maize without any restrictions. The world price (Pw) of maize is $260 per ton and is represented by the horizontal black line. Throughout this problem, assume that the amount demanded by any one country does not affect the world price of maize and that there are no transportation or transaction costs associated with international trade in maize. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. 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) 530 500 Graph Input Tool Market for Maize in Burundi Supply…
2. According to the graph, answer the following questions about Pencil Sharpeners. Price of Pencil Sharpeners $24 16 12 4 Domestic Supply World Price Domestic Demand 0 200 300 450 Quantity of Pencil Sharpeners a. What is the equilibrium price of Pencil Sharpeners before trade? b. What is the equilibrium quantity of Pencil Sharpeners before trade? c. What is the price of Pencil Sharpeners after trade is allowed? d. What is the quantity of Pencil Sharpeners exported? e. What is the amount of consumer surplus before trade? f. What is the amount of consumer surplus after trade? g. What is the amount of producer surplus before trade? h. What is the amount of producer surplus after trade? i. What is the amount of total surplus before trade? j. What is the amount of total surplus after trade? k. What is the change in total surplus because of trade?
Figure 9-20 The figure illustrates the market for rice in Vietnam. 16 10 8 4 Price 1,500 2,000 3,000 Domestic supply World Price Domestic demand Quantity Refer to Figure 9-20. In the absence of trade, total surplus in the Vietnamese rice market amounts to 9,250. O 10,000. 12,000. 13,000.
4. Effect of quotas on local consumers and producers The following graph shows the U.S. domestic market for jackets. PRICE (Dollars) 20 18 Domestic Supply Domestic Demand 16 14 12 10 8 6 4 2 Domestic Supply Price (World) Domestic Demand Price Quota) 0 ° + 8 16 24 32 40 48 56 64 72 80 QUANTITY (Millions of jackets) In the absence of trade with China, the equilibrium price of a jacket is S the domestic quantity supplied equal million jackets. ? At this price, both the domestic quantity demanded and Suppose that trade between the United States and China is open and that the United States initially imposes no tariffs or quotas on jackets imported from China. Assume that China has a comparative advantage in producing jackets and charges the world price of $6 per jacket. (Note: Throughout the problem, assume that the amount demanded by any one country does not affect the world price of jackets.) On the graph, use the grey line (star symbol) to indicate the world price of jackets. At the…