Question

34) Sudan was ernment backed Bar slaves, and then sol organization (cal chase slaves, an istimer prices of inter-provincial shipped PPs to the rents of truck companies within a proving was involved in a civil war between 1983 2005. During this war, gov ant backed Baggara militia raided tribes in the south of the country, ps, and then sold them in northern slave n slave markets. Starting in 1995, a Swiss ation called USI) began raising money to enter the slave market slaves, and then free them back to their South Sudan villages. The program was called "slave redemption." this question, assume there is a demand for slaves that comes from the north where slaves are put into some type of production. The supply of slaves, also es from the north because the northern Baccara militia supply slaves raiding the southern villages. 2. To start, ignore the redemption program. Assume the northern Sudanese demand for slaves is: Qd = 1000 - P, and that the supply of slaves is Q% = 800. Draw the supply and demand curves and show the equilibrium price of a slave. b. Now suppose the redemption program starts. Assume that the CSI re deemers have the same demand for slaves: Qd = 1000 - P. In a graph show the new market demand curve, the new price, and the number of slaves demanded by the northern Sudanese slave owners. c. How many slaves are redeemed/freed? How much did the outside organiza tions pay for the redemption? d. Now suppose that the supply of slaves is not fixed, but is infinitely elastic. That is, the supply curve is P = 200. In the graph below, show what

Answer 1

ga 1000-P S = loo tooo Ja 200 800 Jererefore, at equilibrum Q = 800 P=200 6) total ff redemption new market Q = od tod - program starts demand is 1000 p + 1800-P 2000 - 2P = d = 2000 -2p. A sro 1000 8. 2000-at soo

Date In equilibrium Q = 800 Bleloos , P = 2000-800 P = 600 The number of Dod a slaves freed 1600-600 = 400. organization paid 600 for redemption is Question it as not clear, but I will solve P = 200, od = 1000-p? 1000 od 1000-P 22 1000 IQ = 800 In this case , P -2000