A vegetable fiber is traded in a competitive world market, and the world price is $9 per round. Unlimited quantities are available for import into the United States at this price. The U.S. domestic supply and demand for various price levels are shown as follows: Price U.S Supply (million Lbs.) U.S Demand (Million Lbs.) MGN 100 3 2 34 6 4 28 9 6 22 12 8 16 15 10 10 18 12 4 What is the equation for demand? (Write exactly like: Q=20-5P to get a credit) Q=4+6P Then, what is the equation for supply? (Write like, i.e., Q=(5/8)P to get a credit) Q=3/2P

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

Question-05: A vegetable fiber is traded in a competitive world market, and the world price is $9 per pound. Unlimited quantities are available for import into the United States at this price. The U.S. domestic supply and demand for various price levels are shown as follows: U.S. Supply (Million LBS) U.S. Demand Price (Million LBS) 3 34 6 4 28 9. 22 12 8 16 15 10 10 18 12 4 What is the equation for demand? What is the equation for supply? а. b. At a price of $9, what is the price elasticity of demand? What is it at a price of $12? What is the price elasticity of supply at $9? At $12? c. In a free market, what will be the U.S. price and level of fiber imports? d.

Before Cyprus joined the EU there was an import tariff on imported fresh meat from the EU of €1.00 per Kg at a selling price of €6.00 per kg. The total annual Demand was 20m kgs (20,000tons) per year while when the tariff was lifted (after the accession to the EU) the annual demand increased to 260m kgs (260,000tons). At the €6.00 per kg price, domestic supply has been half of the total annual supply while when the tariff was lifted this was reduced by 20%. Calculate: The total increase in consumer surplus due to the abolition of the tariff. The total amount of the tariff revenue that had been lost. The change in the domestic and foreign producer surplus.

Country C imports 80,000 metric tons of steel from Country U and produces domestically 80,000 metric tons per year. The world price of steel is $500 per metric ton. Assuming linear schedules, research analysts estimated the price elasticity of domestic supply to be 0.50 and the price elasticity of domestic demand to be -0.25 in the current market equilibrium. Q: Summarise and analyse the quantity of steel produced, consumed and imported in Country C. Analyse and discuss the welfare gain from trade in Country C. Show your answers of the steel market with a proper diagram. Producer sunplus before impont duty P.s, = P.S, +x (500 - E 500)) x 80,000 -x soox 40,000 %3D 40,000,000 - 10,000,000 %3D 30.000,000 Why is there a need to minus ½ x 500 x 40,000 ?

Country C imports 80,000 metric tons of steel from Country U and produces domestically 80,000 metric tons per year. The world price of steel is $500 per metric ton. Assuming linear schedules, research analysts estimated the price elasticity of domestic supply to be 0.50 and the price elasticity of domestic demand to be -0.25 in the current market equilibrium.  Q: Summarise and analyse the quantity of steel produced, consumed and imported in Country C. Analyse and discuss the welfare gain from trade in Country C. Show your answers of the steel market with a proper diagram.

The table below shows the demand and supply schedule for gasoline in a hypothetical country called Microland Price per litre ($) Quantity Demanded in 000 Quantity Supplied in 000     litres (per Month) litres (per month)   11 0 27   10 2 25   9 4 23   8 6 20   7 8 17   6 10 15   5 12 12   4 14 10   3 16 7   2 18 5   1 3 3   Describe THREE (3) other changes that could have the same effect on market supply of gasoline as the imposition of the subsidy

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

Much of the demand for U.S. agricultural output has come from other countries. In 1998, the total demand for wheat was Q = 3244 - 283P. Of this, total domestic demand was QD = 1700 - 107P, and domestic supply was QS =1944 + 207P. Suppose the export demand for wheat falls by 40%. a. U.S. farmers are concerned about this drop in export demand. What happens to the free-market price of wheat in the United States? Do farmers have much reason to worry? b. Now suppose the U.S. government wants to buy enough wheat to raise the price to $3.50 per bushel. With the drop in export demand, how much wheat would the government have to buy? How much would this cost the government?

Assume that producers in Luzon can only produce 11 billion kg of palay at the time ofharvest even if price reaches PhP 30 per kg, what will be the value of their own priceelasticity of supply?