(a) To explain: The effect on the price of the apples in Botswana if the trade of apples is allowed by government and the reason for it.

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Answer 1

Question

Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 20, Problem 9P

To determine

(a)

To explain:

The effect on the price of the apples in Botswana if the trade of apples is allowed by government and the reason for it.

To determine

(b)

To indicate:

The number of apples to be produced by domestic producers and the number of apples to be imported, if the apples are traded at Q_D_T_.

To determine

(c)

To show:

The reduced producer's surplus indicated as b in the graph.

To determine

(d)

To show:

The gains from trade as "g" in the graph.

To determine

(e)

To explain:

The reason for which consumers of Botswana are in a better off situation even if they are compensating producers for their loss in producer surplus.

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Tasks Exercise 1 Assess the following functions: 1. f(x)= x2+6x+2 2.f '(x)=10x-2x2+5 a. Find the stationary points. (5 marks) b. Determine whether the stationary point is a maximum or minimum. (5 marks) c. Draw the corresponding curves (5 marks)

Problem 2: The sales data over the last 10 years for the Acme Hardware Store are as follows: 2003 $230,000 2008 $526,000 2004 276,000 2009 605,000 2005 328,000 2010 690,000 2006 388,000 2011 779,000 2007 453,000 2012 873,000 1. Calculate the compound growth rate for the period of 2003 to 2012. 2. Based on your answer to part a, forecast sales for both 2013 and 2014. 3. Now calculate the compound growth rate for the period of 2007 to 2012. 1. Based on your answer to part e, forecast sales for both 2013 and 2014. 5. What is the major reason for the differences in your answers to parts b and d? If you were to make your own projections, what would you forecast? (Drawing a graph is very helpful.)

Answer 2

Question

Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 20, Problem 9P

To determine

(a)

To explain:

The effect on the price of the apples in Botswana if the trade of apples is allowed by government and the reason for it.

To determine

(b)

To indicate:

The number of apples to be produced by domestic producers and the number of apples to be imported, if the apples are traded at Q_D_T_.

To determine

(c)

To show:

The reduced producer's surplus indicated as b in the graph.

To determine

(d)

To show:

The gains from trade as "g" in the graph.

To determine

(e)

To explain:

The reason for which consumers of Botswana are in a better off situation even if they are compensating producers for their loss in producer surplus.

Expert Solution & Answer

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Answer 3

Question

Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 20, Problem 9P

To determine

(a)

To explain:

The effect on the price of the apples in Botswana if the trade of apples is allowed by government and the reason for it.

To determine

(b)

To indicate:

The number of apples to be produced by domestic producers and the number of apples to be imported, if the apples are traded at Q_D_T_.

To determine

(c)

To show:

The reduced producer's surplus indicated as b in the graph.

To determine

(d)

To show:

The gains from trade as "g" in the graph.

To determine

(e)

To explain:

The reason for which consumers of Botswana are in a better off situation even if they are compensating producers for their loss in producer surplus.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Consumer surplus is the consumers' gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price, up to the equilibrium quantity. Producer surplus is the producer's gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price, up to the equilibrium quantity. Consumer surplus is represented by Area A and producer surplus is represented by Area B.

Chapter 20, Problem 9P

To determine

(a)

To explain:

The effect on the price of the apples in Botswana if the trade of apples is allowed by government and the reason for it.

To determine

(b)

To indicate:

The number of apples to be produced by domestic producers and the number of apples to be imported, if the apples are traded at Q_D_T_.

To determine

(c)

To show:

The reduced producer's surplus indicated as b in the graph.

To determine

(d)

To show:

The gains from trade as "g" in the graph.

To determine

(e)

To explain:

The reason for which consumers of Botswana are in a better off situation even if they are compensating producers for their loss in producer surplus.

Expert Solution & Answer

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Answer 5

Chapter 20, Problem 9P

To determine

(a)

To explain:

The effect on the price of the apples in Botswana if the trade of apples is allowed by government and the reason for it.

To determine

(b)

To indicate:

The number of apples to be produced by domestic producers and the number of apples to be imported, if the apples are traded at Q_D_T_.

To determine

(c)

To show:

The reduced producer's surplus indicated as b in the graph.

To determine

(d)

To show:

The gains from trade as "g" in the graph.

To determine

(e)

To explain:

The reason for which consumers of Botswana are in a better off situation even if they are compensating producers for their loss in producer surplus.

Answer 6

Chapter 20, Problem 9P

To determine

(a)

To explain:

The effect on the price of the apples in Botswana if the trade of apples is allowed by government and the reason for it.

Answer 7

Chapter 20, Problem 9P

To determine

(a)

To explain:

The effect on the price of the apples in Botswana if the trade of apples is allowed by government and the reason for it.

Answer 8

To determine

(b)

To indicate:

The number of apples to be produced by domestic producers and the number of apples to be imported, if the apples are traded at Q_D_T_.

Answer 9

To determine

(b)

To indicate:

The number of apples to be produced by domestic producers and the number of apples to be imported, if the apples are traded at Q_D_T_.

Answer 10

To determine

(c)

To show:

The reduced producer's surplus indicated as b in the graph.

Answer 11

To determine

(c)

To show:

The reduced producer's surplus indicated as b in the graph.

Answer 12

To determine

(d)

To show:

The gains from trade as "g" in the graph.

Answer 13

To determine

(d)

To show:

The gains from trade as "g" in the graph.

Answer 14

To determine

(e)

To explain:

The reason for which consumers of Botswana are in a better off situation even if they are compensating producers for their loss in producer surplus.

Answer 15

To determine

(e)

To explain:

The reason for which consumers of Botswana are in a better off situation even if they are compensating producers for their loss in producer surplus.

Answer 16

Expert Solution & Answer

Answer 17

Expert Solution & Answer

Answer 18

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Answer 19

Ch. 20 - Prob. 1P Ch. 20 - Prob. 2P Ch. 20 - Prob. 3P Ch. 20 - Prob. 4P Ch. 20 - Prob. 5P Ch. 20 - Prob. 6P Ch. 20 - Prob. 7P Ch. 20 - Prob. 8P Ch. 20 - Prob. 9P Ch. 20 - Prob. 10P

(a) To explain: The effect on the price of the apples in Botswana if the trade of apples is allowed by government and the reason for it.

Solution Summary: The author explains the effect on the price of apples in Botswana if the trade is allowed by government and the reason for it.

(a)

To explain:

The effect on the price of the apples in Botswana if the trade of apples is allowed by government and the reason for it.

(b)

To indicate:

The number of apples to be produced by domestic producers and the number of apples to be imported, if the apples are traded at Q_D_T_.

(c)

To show:

The reduced producer's surplus indicated as b in the graph.

(d)

To show:

The gains from trade as "g" in the graph.

(e)

To explain:

The reason for which consumers of Botswana are in a better off situation even if they are compensating producers for their loss in producer surplus.

Want to see the full answer?

Chapter 20 Solutions

(a) To explain: The effect on the price of the apples in Botswana if the trade of apples is allowed by government and the reason for it.

Solution Summary: The author explains the effect on the price of apples in Botswana if the trade is allowed by government and the reason for it.

(a) To explain: The effect on the price of the apples in Botswana if the trade of apples is allowed by government and the reason for it.

(b) To indicate: The number of apples to be produced by domestic producers and the number of apples to be imported, if the apples are traded at QDT.

(c) To show: The reduced producer's surplus indicated as b in the graph.

(d) To show: The gains from trade as "g" in the graph.

(e) To explain: The reason for which consumers of Botswana are in a better off situation even if they are compensating producers for their loss in producer surplus.

Want to see the full answer?

Chapter 20 Solutions

(a)

To explain:

The effect on the price of the apples in Botswana if the trade of apples is allowed by government and the reason for it.

(b)

To indicate:

The number of apples to be produced by domestic producers and the number of apples to be imported, if the apples are traded at Q_D_T_.

(c)

To show:

The reduced producer's surplus indicated as b in the graph.

(d)

To show:

The gains from trade as "g" in the graph.

(e)

To explain:

The reason for which consumers of Botswana are in a better off situation even if they are compensating producers for their loss in producer surplus.