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

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?

Consider the markets for cell phones and landline telephone service in France. Presume that when the average income of residents of Lyon is 27,500€ per year, the quantity demanded of landline telephone service is 6,250 and the quantity demanded of an unlimited cell phone is 14,000. When the price of unlimited mobile service increases from 50€ to 60€ per month, the quantity demanded of landline service decreases to 5,500. Furthermore, presume that when the average income increases to 30,000€, the quantity demanded of unlimited mobile service increases to 16,500. a) According to the given information, what type of good is unlimited mobile telephone service? How do you know? Briefly explain.

Consider the following fresh fish exports to GCCs (source: Annual Statistical Yearbook 2007) Year Price (000` RO) Quantity (Tons) 2007 1.03 7,347.8 2006 0.70 11,342.8 2005 1.08 7,902.0     Using midpoint method, compute the elasticity of demand between 2006 – 2007 and 2005 – 2006. Interpret your answers Describe two factors that affect price elasticity of demand for fish exported to GCCs. Do you think price elasticity of fish can positively inform trade policy decision makers in Oman? Why?

Suppose that technological innovation allows for the development of more toaster ovens. Bread, which is a complement to toaster ovens, has increased in price, due to a nationwide shortage of wheat grain. You MUST determine what happens to market (equilibrium) price and quantity in the toaster oven market. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. Market (equilibrium) price increases; a market (equilibrium) price increases Market (equilibrium) price increases; b market (equilibrium) price decreases Market (equilibrium) price decreases; market (equilibrium) price decreases Market (equilibrium) price decreases; d market (equilibrium) price increases Market (equilibrium) price unknown; e market (equilibrium) price decreases Market (equilibrium) price decreases; f market (equilibrium) price unknown

The table shows the hypothetical demand and supply for coffee beans in two countries: Mexico and Armenia. Price ($) per pound of coffee beans Price ($/lb) Mexico quantity demanded (lb) Mexico quantity supplied (lb) Armenia quantity demanded (lb) Armenia quantity supplied (lb) 8 180 500 155 210 7 200 460 180 180 6 250 410 200 160 5 280 360 220 140 4 320 320 240 125 3 350 280 260 115 In autarky, what would the equilibrium price and quantity be in Mexico and Armenia? equilibrium price in Mexico:  $     equilibrium quantity in Mexico:  lb   equilibrium price in Armenia:  $     equilibrium quantity in Armenia:  lb

Consider the world market for wheat, in which Russia is a larger producer. Suppose there is a major failure in Russia's wheat crop due to a severe drought. Explain the likely effect on the equilibrium price and quantity in the world wheat market. Also, explain why Canadian wheat farmers certainly benefit from this drought

Assume the US market of sunflower oil was described by the following domestic supply and demand equations: QDUS = 8000 - 4 P and QSUS = -2000 + 6 P where QDUS and QSUS represent the quantities demanded and supplied (in billions of metric tons) and P is the price per metric ton of sunflower oil (in $). Now add this information: In 2008, China entered into the World Trade Organization and became the largest importer of US sunflower oil. Assume the Chinese import demand for sunflower oil from the US in 2008 was QDCHINA = 20000 - 10 P Given this information, what was the new equilibrium price of sunflower oil in 2008? (Hint: what is the total demand for US sunflower oil?)   $1600 $1400 $1000 $1500

Table 19-2 indicates that the short-run price elasticity of demand for tires is 0.9. If an increase in the price of petroleum (used in producing tires) causes the market prices of tires to rise from $50 to $60, by what percentage would you expect the quanity of tires demanded to change?

The table shows the demand and supply for cocoa beans in two countries: Cameroon and Nigeria. Use the information in the table to answer the questions. Price ($) per pound (lb) of cocoa beans Price ($/lb) Cameroon quantity demanded (lb) Cameroon quantity supplied (lb) Nigeria quantity demanded (lb) Nigeria quantity supplied (lb) 88 180180 500500 155155 210210 77 200200 460460 180180 180180 66 250250 410410 200200 160160 55 280280 360360 220220 140140 44 320320 320320 240240 125125 33 350350 280280 260260 115115 What would be the equilibrium price and quantity in Cameroon and Nigeria if free trade existed between the two countries? price, Cameroon: $     quantity demanded, Cameroon: lb   price, Nigeria: $     quantity demanded, Nigeria: lb