Part (iv): Suppose that the world price of a palm tree rises to $800. How many palm trees will American consumers purchase? 1. 100 2.125 3. 175 4. 225 5. None of the above Part (v): Suppose that the world price of a palm tree is $800. How many palm trees will American sellers sell? 1. 100 2.125 3.175 4. 225 5. None of the above Part (vi): Suppose that the world price of a palm tree is $800. How many palm trees will the United States export? 1. 30,000 2. 50,000 3. 100,000 4. 120,000 5. None of the above

Part (iv): Suppose that the world price of a palm tree rises to $800. How many palm trees will American consumers purchase? 1. 100 2.125 3. 175 4. 225 5. None of the above Part (v): Suppose that the world price of a palm tree is $800. How many palm trees will American sellers sell? 1. 100 2.125 3.175 4. 225 5. None of the above Part (vi): Suppose that the world price of a palm tree is $800. How many palm trees will the United States export? 1. 30,000 2. 50,000 3. 100,000 4. 120,000 5. None of the above

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

Suppose a small country Neverland exports only silver and gold. These two industries employ 40% of the population of Neverland. Export is equal to 50% of Neverland's GDP. 60% of all the export revenue Neverland obtains from silver export. Other things being equal, if the price of silver on the world market goes up by 20%, by how much Neverland's welfare will change? [Type your answer in percent (to the first decimal point) and use sign for the direction of change, i.e. if your answer is "goes up by 20.56%" type 20.6, if your answer is "goes down by 20.34%" type -20.3.] Answer: x
Now suppose other countries produce cassava and Côte d'Ivoire can import cassava at the world price (Pw) which is lower than the autarky (e. economic independence or self-sufficiency) price (Pa). Figure 2 below depicts the demand and supply curves for cassava in Côte d'Ivoire with imports. Quantity is represented on horizontal axis and price is on the vertical axis. Carefully examine Figure 2 and answer questions 8-11 that follow: Note: Qa is the Autarky quantity, Qs is the quantity of cassava supplied by producers in Côte d'Ivoire, and Qd is the quantity of cassava demanded by consumers in Côte d'Ivoire after import Figure 2: Demand and Supply of Cassava in Côte d'Ivoire with Imports Price ($) Pa Oa 9b OC Od OF or Pw 0 a Qs U d la la D₂ Quantity (kg) Question 8: Using the letters (i.e. a, b, c, d, e, f) from Figure 2, which area represents the producer surplus if Côte d'ivoire imports cassava at the world price (Pw)? Select all that apply.
There are two countries Home and Foreign. Home has 1,200 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 3, while in banana production it is 2. Foreign has a labor force of 800. Foreign's unit labor requirement in apple production is 5, while in banana production it is 1. Suppose world relative demand takes the following form: Demand for apples/demand for bananas = price of bananas/price of apples a-b. On the graph to the right: 1.) Using the 3-point curved line drawing tool, draw the relative demand curve. Label the curve RD. 2) Using the point drawing tool, indicate the equilibrium relative price of apples. Label this point EQ. Carefully follow the instructions above and only draw the required objects. 2 Relative price of apples Pa/Pb 0 035 0.75 05 Relative quantity of apples RS
None
PROBLEM (6) (Optimal tariff setting without the small country assumption) US demand and supply for wheat are Q = 120-p and Q = p respectively. The rest of the world ROW demand and supply for wheat are Q = 240 - 4p and Q = 2p respectively. Suppose the US is imposing $t (per unit) tariff for imports from the rest of the world. What should the tarifft be, in order to maximize Tariff Revenues?
The following graph shows the domestic demand for and supply of oranges in Guatemala. The world price (Pw) of oranges is $550 per ton and is displayed as a horizontal black line. Throughout the question, assume that all countries under consideration are small, that is, the amount demanded by any one country does not affect the world price of oranges and that there are no transportation or transaction costs associated with International trade in oranges. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. PRICE (Dollars per ton) 820 790 760 730 700 670 640 610 580 550 520 0 Domestic Demand 1 Domestic Supply PW 30 60 90 120 150 180 210 240 270 300 QUANTITY (Tons of oranges) A tariff set at this level would raise (~.) ? If Guatemala is open to International trade In oranges without any restrictions, it will import Suppose the Guatemalan government wants to reduce imports to exactly 60 tons of oranges to help…
Price of Clothing Market for Clothing in Vietnam Domestic Demand Quantity of Clothing Domestic Supply World Price A Consumer Surplus Producer Surplus
Topic 3 Assignment The following graph shows the domestic supply of and demand for maize in Bangladesh. Bangladesh is open to international trade of maize without any restrictions. The world price (Pw) of maize is $245 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. 470 Supply 420 305 X I I Demand I PRICE (Dollars perton) 445 245 720 D P W 40 80 120 150 200 240 280 320 350…
Before the North American Free Trade Agreement (NAFTA) gradually eliminated import tariffs on goods, the autarky price of tomatoes in Mexico was below the world price and in the United States was above the world price. Similarly, the autarky price of poultry in Mexico was above the world price and in the United States was below the world price. Draw diagrams with domestic supply and demand curves for each country and each of the two goods. As a result of NAFTA, the United States now imports tomatoes from Mexico and the United States now exports poultry to Mexico. How would you expect the following groups to be affected? a. Mexican and U.S. consumers of tomatoes. Illustrate the effect on consumer surplus in your diagram. b. Mexican and U.S. producers of tomatoes. Illustrate the effect on producer surplus in your diagram. c. Mexican and U.S. tomato workers. d. Mexican and U.S. consumers of poultry. Illustrate the effect on consumer surplus in your diagram. e. Mexican and U.S.…
B1) Country A has 10 million workers and Country B has 20 million workers. Each worker in Country A can produce 2 units of wine and 4 units of fabric in a year. Each worker in Country B can produce 3 units of wine and 5 units of fabric in a year. a) Which country should import wine? Explain your answer. b) What is the range of trading prices (in terms of fabric) for wine between the two countries?
Economic Use the graph below and the following information to answer the next question. The world price of soybeans is five dollars per bushel and the importing country is small enough to not affect the real price. Suppose the government puts a tariff of one dollars per bushel on soybean imports how much revenue will the government raise from a one dollar per bushel tariff on soybean imports.
What would be the effect of ANWR production on the world price of oil given that ɛ = - 0.50, 1 = 0.40, the pre-ANWR daily world production of oil is Q, = 82 million barrels per day, the pre-ANWR world price is p, = $100 per barrel, and daily ANWR production would be 0.8 million barrels per day? For simplicity, assume that the supply and demand curves are linear and that the introduction of ANWR oil would cause a parallel shift in the world supply curve to the right by 0.8 million barrels per day. Determine the long-run linear demand function that is consistent with pre-ANWR world output and price. The long-run demand function is Q = 123 – 0.41p`. Determine the long-run linear supply function that is consistent with pre-ANWR world output and price. The long-run supply function is Q = 49.2 + 0.328p`. Determine the post-ANWR long-run linear supply function. The long-run supply function with ANWR oil production is Q= 50 + 0.328p'. Use the demand curve and the post-ANWR supply function to…