2. In contrast to brussels sprouts, Canada is a major exporter of wheat. Canada'sdemand (QPCDN) and supply (QSCDN) of wheat is given respectively byQCDN=600-40 PCDN and QCDN180 + 20 PCDNwhere P is the price per bushel of wheat.a) Derive the excess supply curve of wheat for Canada.b) What will be the price at which Canada does not export wheat?c) China is the major importer of Canadian wheat. Its demand (Q) and supply(QSH) for wheat is given respectively byQ°r = 500 – 10 PHandQ n = 170 + 5 PaDerive the excess demand curve for wheat in China.d) What would wheat price be in China in the absence of trade?e) If Canada and China are allowed to trade with one another, what will be the priceand the volume of trade? tof) The trade war has heated up and China imposes a tariff of $5.00 per bushel.Determine the effect of the tariff on: (1) the price of wheat in each country, (2)the quantity of wheat produced and consumed in each country, and (3) thevolume of tradeg) Properly label to illustrate the excess demand for China and excess supply curvefor Canada on the same graph with free trade and with the import tariff of $5imposed. ( rks).

The equilibrium occurs where the demand and supply are equal. The excess supply is the difference…

In contrast to brussels sprouts, Canada is a major exporter of wheat. Canada's demand (QCDN) and supply (QCDN) of wheat is given respectively by QCDN 180 + 20 PCDN QCDN=600-40 PCDN and where P is the price per bushel of wheat. a) Derive the excess supply curve of wheat for Canada. = b) What will be the price at which Canada does not export wheat? c) China is the major importer of Canadian wheat. Its demand (Q) and supply (QSH) for wheat is given respectively by QPH = 500 - 10 PH and Ợ n = 170 + 5 PH

In contrast to brussels sprouts, Canada is a major exporter of wheat. Canada's demand (QCDN) and supply (QCDN) of wheat is given respectively by QCDN 180 + 20 PCDN QCDN=600-40 PCDN and where P is the price per bushel of wheat. a) Derive the excess supply curve of wheat for Canada. = b) What will be the price at which Canada does not export wheat? c) China is the major importer of Canadian wheat. Its demand (Q) and supply (QSH) for wheat is given respectively by QPH = 500 - 10 PH and Ợ n = 170 + 5 PH

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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