The accompanying table provides data regarding domestic demand and domestic supply of apples in the United States.PriceQuantity supplied domesticallyQuantity demanded domestically(per apple)(millions of pounds per year)(millions of pounds per year)0.156,2909,7300.257,1508,8700.358,0108,0100.458,8707,1500.559,7306,290a. Based on the information provided in the table, move the points to plot the domestic demand and domestic supply curvesin the graph.Market for apples8075Consumer surplu...Domestic demar7065Producer surplu...Domestic suppl605550 3530252015106,2907,1508,0108,8709,73010,590Quantity (millions of pounds)b. Now consider what happens when the price at which apples trade in the world market is $0.10 per apple above thedomestic price. If the United States allows international trade,8,010 - million pounds of apples will be produceddomestically, and9,730million pounds of apples will be purchased in the United States. The United States willthereforeexport3,340 - million pounds of apples.c. In the graph, shade the areas representing consumer surplus and producer surplus with trade.d. As a result of trade, consumer surplusdecreasesand producer surplusincreasesTotaleconomic surplusdoes not changePrice

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The accompanying table provides data regarding domestic demand and domestic supply of apples in the United States. Price Quantity supplied domestically (millions of pounds per year) Quantity demanded domestically (millions of pounds per year) (per apple) 0.15 6,290 9,730 0.25 7,150 8,870 0.35 8,010 8,010 0.45 8,870 7,150 0.55 9,730 6,290 a. Based on the information provided in the table, move the points to plot the domestic demand and domestic supply curves in the graph. Market for apples 80 75 Consumer surplu.. Domestic demai 70 65 Producer surplu... Domestic supp 60 55

The accompanying table provides data regarding domestic demand and domestic supply of apples in the United States. Price Quantity supplied domestically (millions of pounds per year) Quantity demanded domestically (millions of pounds per year) (per apple) 0.15 6,290 9,730 0.25 7,150 8,870 0.35 8,010 8,010 0.45 8,870 7,150 0.55 9,730 6,290 a. Based on the information provided in the table, move the points to plot the domestic demand and domestic supply curves in the graph. Market for apples 80 75 Consumer surplu.. Domestic demai 70 65 Producer surplu... Domestic supp 60 55

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The accompanying table provides data regarding domestic demand and domestic supply of apples in the United States.
Price
Quantity supplied domestically
Quantity demanded domestically
(per apple)
(millions of pounds per year)
(millions of pounds per year)
0.15
6,290
9,730
0.25
7,150
8,870
0.35
8,010
8,010
0.45
8,870
7,150
0.55
9,730
6,290
a. Based on the information provided in the table, move the points to plot the domestic demand and domestic supply curves
in the graph.
Market for apples
80
75
Consumer surplu...
Domestic demar
70
65
Producer surplu...
Domestic suppl
60
55
50

35
30
25
20
15
10
6,290
7,150
8,010
8,870
9,730
10,590
Quantity (millions of pounds)
b. Now consider what happens when the price at which apples trade in the world market is $0.10 per apple above the
domestic price. If the United States allows international trade,
8,010 - million pounds of apples will be produced
domestically, and
9,730
million pounds of apples will be purchased in the United States. The United States will
therefore
export
3,340 - million pounds of apples.
c. In the graph, shade the areas representing consumer surplus and producer surplus with trade.
d. As a result of trade, consumer surplus
decreases
and producer surplus
increases
Total
economic surplus
does not change
Price

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