Question 3 Table 1 illustrates the demand and supply schedules for microwave sets made in AlamDunia,...
The demand and supply schedules for television (TV) sets in Venezuela, a “small” nation that is unable to affect world prices are given as: Qd= 900-2P Qs= -200+2P Suppose Venezuela imports TV sets at a price of $150 each. Under free trade, how many sets does Venezuela produce? _______ Blank 1 How many sets does Venezuela consume? _______ Blank 2 How many sets does Venezuela import? _______ Blank 3 Determine Venezuela's consumer surplus _______ Blank 4 and producer surplus _______...
The table shows the demand and supply schedules for apples Suppose that the government introduces a production quota for apples and sets it at 2,500 pounds per week. Who gains and who loses? What are the market price of apples, the producer surplus, and the deadweight loss? The market price of applsisa pound. The producer surpluas is s Quantity supplied Quantity Pricedemanded ars per 3.50 5.25 7.00 8.75 10.50 pounds per week) 5,625 5,000 4,375 3,750 3,125 2.500 1,250 2,500...
The table shows the demand and supply schedules for Quantity demanded Quantity supplied apples Price Suppose that the government introduces a production quota (pounds per week) 5,625 5,000 4,375 3,750 3,125 2,500 for apples and sets it at 3,750 pounds per week. 1.25 2.50 3.75 5.00 6.25 7.50 1,250 2,500 3,750 5,000 6,250 What are the market price of apples, the producer surplus and the deadweight loss created? The market price of apples is $a pound. The producer surplus is...
Problem 1 Below, you are provided with the demand and supply curves for t-shirts and the world price of a t-shirt. You will usethis information to identify whether the country imports or exports t-shirts. You will also examine the impact of a tariffon the amount of consumer and producer surplus that results in this market. Suppose that the world price of a t-shirt is $20. Does this country import or export t-shirts? How many? Suppose that this country engages in...
the table shows the supply and demand schedules for second hand copies of the Thord edition of a popular economics 2. The table below shows the supply and demand schedules for second-hand copies of the third edition of a popular economics textbook. 85 90 95 100 105 110 Price(€) 55 60 65 70 75 80 Qdemand 15108 322 Quupply 01203 8 9 6 5 a. Calculate consumer and producer surplus at the equilibrium in this market b. When the 4th...
1.The domestic demand (Q D) and supply (QS) for strawberries in Canada are given respectively by QD= 600 – 20P and QS= -150 + 30P where P is the price per box of strawberries. (60 marks total) a) What would be the equilibrium price and quantity if Canada could not trade with any other country for strawberries? (5 marks) b) Calculate producer surplus, consumer surplus and total surplus in the autarky situation (no trade) for strawberries in Canada? (12 marks)...
A demand function for milk has been estimated as ? = 60 − 3? and a supply function for milk has been estimated as ? = 5 + 2.5?. Now assume that the US government imposes an import quota of 1.67 units, and that milk farmers are authorised to restrict US milk production (you can assume that milk producers behave as profitmaximising monopolists). Modify your diagram to include the effects of the proposed policy. Label all relevant elements on your...
The accompanying diagram illustrates the U.S. domestic demand curve and domestic supply curve for beef. Price of beef Domestic supply P A P Domestic demand Q Ost Our Q, Quantity of beef The world price of beef is Pw. The United States currently imposes an import tariff on beef, so the price of beef is Pr. Congress decides to eliminate the tariff. In terms of the areas marked in the diagram, answer the following questions. a. With the elimination of...
A demand function for milk has been estimated as P = 60 – 3Q and a supply function for milk has been estimated as P = 5 + 2.5Q. 1. Draw a diagram of this market in competitive autarky equilibrium (without the policy). Label all relevant elements (prices, quantities, supply, and demand). Include the numerical values for the important points in your diagram. Calculate consumer surplus, producer surplus, government expenditure, deadweight loss, and total welfare in this market. (7 marks)...
ONLY QUESTION 5 AND 6 1. The demand and supply schedules for pop in Vancouver are as follows: Price ($/pack of 2 bottles) Quantity demanded (thousands /week) Quantity supplied (thousands/ week) 2 280 0 3 240 30 4 200 60 5 160 90 6 120 120 7 80 140 8 40 160 9 0 180 (ONLY QUESTION 5 AND6) 1) With the use of a demand and supply diagram, show the market equilibrium. b. Now suppose that a fire destroys...