Suppose that the world price of bananas is 18 U.S. cents a pound and that when Australia does not trade bananas internationally, their equilibrium price in Australia is 12 U.S. cents a pound. If Australia opens up to international trade, does it export or import bananas? Explain how the price of bananas in Australia changes. How does the quantity of bananas consume in Australia change? How does the quantity of bananas grown in Australia change?

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A: Demand : P = 420 - 60Q 60Q = (420-P) Q = (420-P)/60   Supply : P = 2 + 20Q 20Q = (P-2)  Q = (P-2)/20…

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Q: 3. Import quotas Kazakhstan is an apple producer, as well as an importer of apples. Suppose the…

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A: Equilibrium is achieved at the output level where Qs equals Qd.

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Q: PRICE (Dollars per ton) 1000 900 800 700 600 500 400 300 200 --- 100 0 SK 0 50 100 150 200 250 300…

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