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- A Moving to another question will save this response. Question 7 Suppose supply is given by P = 2Q and demand is given by P = 1000 – 2Q. What will happen in this economy if the world price is 400? An export of 200 units An import of 200 units An export of 100 units An import of 100 units A Moving to another question will save this response. MacBook AirHow do you think each of the following would affect the world price of oil -the Alaskan oil pipeline was completed -the ceiling on the price of oil was removed -oil was discovered in the north sea -sport utility vehicles and minivans became popular -the use of nuclear power declinedWhich of the following would help to reduce imports? Select one: a) A fall in quotas b) Increased borrowings c) Fall in subsidy to domestic firms d) A fall in tariffs e) Decreased import substitution
- I need the answer as soon as possibleSuppose Colombia is open to free trade in the world market for soybeans. Because of Colombia’s small size, the demand for and supply of soybeans in Colombia do not affect the world price. The following graph shows the domestic soybeans market in Colombia. The world price of soybeans is PW=$400 per ton.Assume that demand and supply of a good in country 1 and country 2 are given by the following expressions (prices are measured in euros and quantities in numbers per day): Q1120P(demand in country 1) Q1 P-20 (the supply in country 1) Q2=60-2P (demand in country 2) Q2-P-15 (the supply in country 2) 4 4a 4b Calculate each country's price under autarky. Derive the export supply and import demand for the good and illustrate them together in
- Assume a hypothetical city in the United States at the start of the pandemic consumed 250 boxes of surgical gowns at a price of $120 per box. As the pandemic spread and U.S. demand surged, the United States removed the pre pandemic tariffs on imported medical supplies. Which of the following statements about the city's consumption of surgical gowns during the pandemic would be correct, based on the graph below? The Impact of a Tariff Price (P-120 Tarit P-S100 PS Dado Imports with atart Da 100 150 260 300 1,000 6,000 10,000 Quantity (Sugical Gon Correct Answer(s) Government revenue will fall by $2,000. The new equilibrium quantity will be 5,000 boxes. The supply curve will shift to the left. The new equilibrium price for a box of gowns will be $100. The removal of the tariff will increase demand. Incorrect Answer(s)Consider the information in the file named HW5 - Green Paradox. Concentrate on the scenario called Green Paradox Case 1. Currently (prior to any GHG policies by the Group 1 countries) the world equilibrium price of oil is “?” dollars and the equilibrium quantity of oil transacted in the world market is “?” units. At this price, Group 1 countries are consuming "?" units of oil and Group 2 countries are consuming “?” units of oil. Group 1 countries reduce their demand for oil by 70 units through aggressive conservation policies as well investments in renewable sources of energy. They hope/predict that the global consumption and production of oil will decrease by the same amount. However, as a result of this policy, the world equilibrium price of oil will change to "?" dollars, and the equilibrium quantity of oil transacted in the market will change to "?" units. At this new price, Group 1 countries will be consuming "?" units of oil and Group 2 countries will be consuming "?" units of…The following graph shows the domestic supply of and demand for maize in Burundi. The world price (Pw) of maize is $270 per ton and is represented by the horizontal black line. Throughout the question, 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. 450 Domestic Demand Domestic Supply 430 410 390 370 350 330 310 290 P 270 250 40 80 120 180 200 240 280 320 360 400 QUANTITY (Tons of maize) If Burundi is open to international trade in maize without any restrictions, it will import tons of maize. Suppose the Burundian government wants to reduce imports to exactly 160 tons of maize to help domestic producers. A tariff of per ton will achieve this. A tariff set at this level would raise $ in revenue for the…
- Suppose you have the following for white t-shirts market:Market demand is P=125-(3/8)QMarket supply is P=5+(1/8)Q. Suppose it is now possible to obtain white t-shirts from the rest of the world at $15 per item at anygiven quantity. In other words, there is now a global supply that is horizontal at $15.a. Obviously the world price and domestic price will now be $15. Calculate the quantityproduced and demanded domestically. Calculate the difference as imports from the rest of theworld.b. Calculate the CS (Consumer Surplus) and PS (Producer Surplus) under free trade. Who gainswith free trade? Who loses?Hint: Use graphs first.5. Agricultural export subsidies in a small nation The following graph shows the market for wheat in Canada, where Do is the demand curve, Sc is the supply curve, and Pw is the free trade price of wheat. Assume that Canada is a relatively small producer of wheat, so changes in its output do not affect the world price of wheat. Also assume that Canada is currently open to free trade, and domestic consumers are able to purchase wheat at the world price with negligible transportation costs. Suppose a subsidy of $80 per ton is granted to exporters in Canada, allowing them to sell their products abroad at prices below their costs. Assume that trade restrictions are also put in place in order to prevent domestic consumers from buying wheat abroad at the world price. Use the grey line (star symbols) to indicate the world price of wheat plus the subsidy on the following graph. Then use the black point (plus symbol) to indicate the price of wheat in Canada and the quantity demanded at that…The figure below depicts the domestic market for a particular good. The curve labeled S represents domestic supply. The curve labeled D represents domestic demand. The line labeled Pw is the world price of the good. If the figure does not show, you may view it by clicking the following link: Market with Trade PDF.pdf. Price 50 45 40 35 30 25 20 15 10 5 0 0 10 20 30 40 50 60 The quantity of domestic consumption is Assume that international trade HAS been established. The quantity of domestic production is The quantity of imports is The new value of consumer surplus is $ 70 The new value of producer surplus is $ The government revenue from the tariff is $ 80 units. 90 100 Quantity units. 110 units. Assume now that the home country has imposed a $10 tariff on imports of the good. 120 U₂₁ S Pw O 130 140 150 160 170 180 190 200