Homework Answers
If a country has comparative advantage in production of a good then the country has lower opportunity cost of producing that good. Nations that produce according to their comparative advantage are maximizing the benefits that they receive from trade and consequently, their national welfare. The benefit that one country accrues from trade is called gains from trade.
According to the data given, the domestic market price for paper jack is $10 while the international price is $12. then domestic producers have comaprative advantage in paper jack. Hence, US will export paper jack and will earn $2 profit per unit.
On the other hand, the domestic price of parmesan is $15 and the world price is $12. Then the country can gain $3 per unit if it buys parmesan fromthe world. Then US will import parmesan.
Therefore, the correct option is
- exporter of paperjack-importer of parmesan
====================================================================
The gains from trade in case of export is given by the area ABC below
Therefore, the correct option is
- 30
Add Answer to:
Consider pepper jack cheese and parmesan cheese markets for the US. The domestic market equilibrium price...
Consider world consisting of two trading entities: the US and the EU. The EU is the exporter of cheese to the US and the importer of oil from the US. Assume the world price of both cheese and oil are set in terms of dollars ($). Also assume that there is
Consider world consisting of two trading entities: the US and the EU. The EU is the exporter of cheese to the US and the importer of oil from the US. Assume the world price of both cheese and oil are set in terms of dollars ($). Also assume that there is no barriers or restrictions on trade for either good. Also assume that the entire exchange between the US and EU is made of trade account transactions and that there...
Question 16 (2.5 points) Consider a market that is initially in equilibrium with quantity demanded equal to quantit...
Question 16 (2.5 points) Consider a market that is initially in equilibrium with quantity demanded equal to quantity supplied at a price of $20. If the world price of the good is $10 and the country opens up to international trade then in this market then OA) the quantity demanded will decrease, the quantity supplied will decrease, and A) the price will decrease. B) imports will increase, the price will decrease, and the supply curve will shift to the left....
Italy’s demand and supply for cheese is given in the table below: Price (US $) Qty....
Italy’s demand and supply for cheese is given in the table below: Price (US $) Qty. Demand Qty. Supplied 15 4000 1000 20 3500 2000 25 3000 3000 30 2500 4000 1.Draw the demand and supply diagram. What is the domestic equilibrium price and quantity? 2.If the world price of cheese is $20, (add this to the diagram) would Italy become an exporting or importing country for cheese? 3.Who gains and who loses from trade? Show the gains from trade...
Price (S/pound) The graph to the right shows the competitive equilibrium in the domestic cotton market...
Price (S/pound) The graph to the right shows the competitive equilibrium in the domestic cotton market in autarky (no trade). Suppose the world price of cotton is $7 per pound, and assume that the United States can buy as much imported cotton as it wants at the world price. Now suppose that the U.S. allows the free trade of cotton. 1.) Using the line drawing tool, indicate the world price of cotton and label it Pw 2.) Using the point...
Consider the Guatemalan market for tangerines. The following graph shows the domestic demand and domestic supply...
Consider the Guatemalan market for tangerines. The following graph shows the domestic demand and domestic supply curves for tangerines in Guatemala. Suppose Guatemala's government currently does not allow international trade in tangerines Use the black point (plus symbol) to indicate the equilibrium price of a ton of tangerines and the equilibrium quantity of tangerines in Guatemala in the absence of international trade. Then, use the green triangle (triangle symbol) to shade the area representing consumer surplus in equilibrium. Finally, use...
Consider the Colombian market for soybeans. The following graph shows the domestic demand and domestic supply...
Consider the Colombian market for soybeans. The following graph shows the domestic demand and domestic supply curves for soybeans in Colombia. Suppose Colombia's government currently does not allow international trade in soybeans. Use the black point (plus symbol) to indicate the equilibrium price of a ton of soybeans and the equilibrium quantity of soybeans in Colombia in the absence of international trade. Then, use the green triangle (triangle symbol) to shade the area representing consumer surplus in equilibrium. Finally, use the purple...
please help explain 4 19 0 25 15 complete brum Market for Tennis Shoes The diagram...
please help
explain
4 19 0 25 15 complete brum Market for Tennis Shoes The diagram on the right shows the market for tennis shoes in the United States. If the United States does not made with other countries, what are the price and quantity of tennis shoes? The equilibrium prices and the equilibrium quality is million pairs of shoes Suppose the United States opens to free trade with other countries and the world is $40 per often shoes What...
Consider two markets: the market for motorcycles and the market for pancakes. The initial equilibrium for...
Consider two markets: the market for motorcycles and the market
for pancakes. The initial equilibrium for both markets is the same,
the equilibrium price is $4.50, and the equilibrium quantity is
25.0. When the price is $6.75, the quantity supplied of motorcycles
is 71.0 and the quantity supplied of pancakes is 105.0. For
simplicity of analysis, the demand for both goods is the same.
Using the midpoint formula, calculate the elasticity of supply
for pancakes. Please round to two decimal...
2) Suppose that China opens up its aircraft market to international trade and the world price...
2) Suppose that China opens up its aircraft market to international trade and the world price of an aircraft becomes $100 million. China becomes an (either importing or exporting) country because the world price is (either lower or greater) than the domestic price. The amount of import is aircrafts because the domestic quantity demanded is aircrafts and the domestic quantity supplied is aircrafts. Consumer surplus is $ million and consumer surplus increases by $ million compared to closed economy. Producer...
Consider the Sudanese market for tangerines The following graph shows the domestic demand and domestic supply...
Consider the Sudanese market for tangerines The following graph shows the domestic demand and domestic supply curves for tangerines in Sudan. Suppose Sudan's government currently does not allow international trade in tangerines Use the black point (plus symbol) to indicate the equilibrium price of a ton of tangerines and the equilibrium quantity of tangerines in Sudan in the absence of international trade. Then, use the green triangle (triangle symbol) to shade the area representing consumer surplus in equilibrium. Finally, use...
Question 16 (2.5 points) Consider a market that is initially in equilibrium with quantity demanded equal to quantity supplied at a price of $20. If the world price of the good is $10 and the country opens up to international trade then in this market then OA) the quantity demanded will decrease, the quantity supplied will decrease, and A) the price will decrease. B) imports will increase, the price will decrease, and the supply curve will shift to the left....
Price (S/pound) The graph to the right shows the competitive equilibrium in the domestic cotton market in autarky (no trade). Suppose the world price of cotton is $7 per pound, and assume that the United States can buy as much imported cotton as it wants at the world price. Now suppose that the U.S. allows the free trade of cotton. 1.) Using the line drawing tool, indicate the world price of cotton and label it Pw 2.) Using the point...
Consider the Guatemalan market for tangerines. The following graph shows the domestic demand and domestic supply curves for tangerines in Guatemala. Suppose Guatemala's government currently does not allow international trade in tangerines Use the black point (plus symbol) to indicate the equilibrium price of a ton of tangerines and the equilibrium quantity of tangerines in Guatemala in the absence of international trade. Then, use the green triangle (triangle symbol) to shade the area representing consumer surplus in equilibrium. Finally, use...
please help
explain
4 19 0 25 15 complete brum Market for Tennis Shoes The diagram on the right shows the market for tennis shoes in the United States. If the United States does not made with other countries, what are the price and quantity of tennis shoes? The equilibrium prices and the equilibrium quality is million pairs of shoes Suppose the United States opens to free trade with other countries and the world is $40 per often shoes What...
Consider two markets: the market for motorcycles and the market
for pancakes. The initial equilibrium for both markets is the same,
the equilibrium price is $4.50, and the equilibrium quantity is
25.0. When the price is $6.75, the quantity supplied of motorcycles
is 71.0 and the quantity supplied of pancakes is 105.0. For
simplicity of analysis, the demand for both goods is the same.
Using the midpoint formula, calculate the elasticity of supply
for pancakes. Please round to two decimal...
2) Suppose that China opens up its aircraft market to international trade and the world price of an aircraft becomes $100 million. China becomes an (either importing or exporting) country because the world price is (either lower or greater) than the domestic price. The amount of import is aircrafts because the domestic quantity demanded is aircrafts and the domestic quantity supplied is aircrafts. Consumer surplus is $ million and consumer surplus increases by $ million compared to closed economy. Producer...
Consider the Sudanese market for tangerines The following graph shows the domestic demand and domestic supply curves for tangerines in Sudan. Suppose Sudan's government currently does not allow international trade in tangerines Use the black point (plus symbol) to indicate the equilibrium price of a ton of tangerines and the equilibrium quantity of tangerines in Sudan in the absence of international trade. Then, use the green triangle (triangle symbol) to shade the area representing consumer surplus in equilibrium. Finally, use...
Most questions answered within 3 hours.
-
exercise on VSEPR and molecular structrue.
octahedral
SeCl62-
TeCl62-
ClF62-
distorted
SeF62–
IF6–
asked 34 minutes ago -
A regression equation that describes the relationship between
the amount of the bill ($) at a...
asked 4 minutes ago -
284 mL of a 0.52 M potassium hydroxide solution is added to 467
mL of a...
asked 32 minutes ago -
Little’s Law: Val d’Costa is a world famous ski village in the
French Alps. Because of...
asked 1 hour ago -
Find the absolute error D for the calculation if A + B/C=D A=
9.4 +/- 0.4...
asked 1 hour ago -
New Air Heating and Cooling, manufactures furnaces and central
air units. The company pride itself on...
asked 1 hour ago -
A coach uses a new technique to train gymnasts. Seven
gymnasts were randomly selected and their...
asked 3 hours ago -
While rotating the tires on your car you notice a rock [mass =
0.1 Kg] stuck...
asked 5 hours ago -
Using MARS simulator, write MIPS programs according to
the following scenarios: Receive a positive integer number...
asked 7 hours ago -
An object in front of a concave mirror has a real image that is
11.5 cm...
asked 7 hours ago -
Consider the reaction, C3 H8 + O2 --> CO2 + H2O. How many
moles of O2...
asked 9 hours ago -
You and your opponent both roll a fair die. If you both roll the
same number,...
asked 9 hours ago