Use the following table for Country X to answer the next question. Column 1 of the table is the world-market price of a product, Column 2 is the quantity demanded domestically (Qdd), and Column 3 is the quantitysupplied domestically (Qsd). Assume the small-country model is applicable.Price Qdd Qsd$5.00 2004004.002503503002502003.00 3002.00 3501.00 400If Country X opens itself up to international trade and the world-market price of the product is $3, then Country X willMultiple ChoiceOneither export nor import the product.export some units of the product.import some units of the product.not produce the product.

The free trade refers to international trade where government does not impose the restrictions on…

Use the following table for Country X to answer the next question. Column 1 of the table is the world-market price of a product, Column 2 is the qu supplied domestically (Qsd). Assume the small-country model is applicable. Price Odd Qsd $5.00 200 400 4.00 250 350 3.00 300 300 2.00 350 250 1.00 400 200 If Country X opens itself up to international trade and the world-market price of the product is $3, then Country X will Multiple Choice

Use the following table for Country X to answer the next question. Column 1 of the table is the world-market price of a product, Column 2 is the qu supplied domestically (Qsd). Assume the small-country model is applicable. Price Odd Qsd $5.00 200 400 4.00 250 350 3.00 300 300 2.00 350 250 1.00 400 200 If Country X opens itself up to international trade and the world-market price of the product is $3, then Country X will Multiple Choice

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose trade protectionism is imposed, and a tariff is introduced to the market for butter. We can assume that the quantity demanded will _____ and the quantity supplied will _____ increase or decrease?
Consider the market for coffee in the small, isolated country of Krakozhia. Within Krakozhia, the domestic demand for coffee is: Q = 500-2p and the domestic supply of coffee is: Q* = -150+ 3p
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Suppose 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.
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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…
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