Question 1. The 2023 demand and supply equations for Canadian ginseng are as follows: P= $100-Qa Ca P= $10+Qs Can (1) (2) As a result of Prime Minister Trudeau's successful trade mission to Pottsville, Pottsville has agreed to buy Canadian ginseng in 2022. Their demand is given as follows: P=80-2QPor (10) What are the economic effects of this successful trade mission?
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- QUESTION 6 The following figure depicts the supply and demand schedules of calculators for Greece, a "small" country that is unable to affect the world price. Greece's supply and demand schedules of calculators are respectively depicted by SG and DG Assume that Greece imports calculators from either Germany or France. Suppose Germany is the world's low-cost producer who can supply calculators to Greece at $20 per unit, while France can supply calculators at S30 per unit. Queny f Cako Referring to the above figure, suppose Greece forms a customs union with France. Greece will import: a. 3 calculators at a per-unit price of $40 b.3 calculators at a per-unit price of $30 c.6 calculators at a per-unit price of $30 d.6 calculators at a per-unit price of $40Home's import demand curve (shown on the graph to the right) for wheat is QMD 80-40P. Foreign's demand curve is Foreign's supply curve is D=80-20P. S-40+20P. 1) Using the line drawing tool, accurately graph Foreign's export supply curve. Label the curve 'EX 2) Using the point drawing tool, assuming free trade between the countries at zero transportation cost, indicate on the graph the world price of wheat and the volume of trade. Label the point Ea Carefully follow the instructions above and only draw the required objects. What would the price of wheat be in the absence of trade? $(Round your answer to the nearest penny) 3- 04 0 Price, P EX 120 MD 10 20 30 40 50 60 70 80 90 100 Quantity, Q 3BTU, draw a diagram to illustrate how the develop- c. As a percent of total exports, rank the states in orda b. Calculate the growth in exports from 2002 to 2012 156 I PART 2 SUPPLY AND DEMAND C. Assuming natural gas prices in Europe are $6.00 per BTU, draw a diagram to illustrate how the develop- ment of a natural gas terminal in the United States will affect supply and demand in the natural gas market for Europe. Explain your findings. d. How will the exporting of natural gas from the United States to Europe affect consumers and pro0- ducers in both places? Note that most of the natural gas in Europe originates from Russia's state-owned natural gas company, Gazprom. Access the Discovering Data exercise for Chapter 5 online to answer the following 3. questions. a. Rank the states in order of exports to China. Rank in order of most to fewest exports. for each state. of most to least exports to Chino
- On May 13, 2022, the Government of India announced a ban on wheat export, citing s food security and soaring (food) prices. i) Explain how a ban on wheat export may help to stabilize food price in India. ii) Russia, Europe, the United States and Canada are traditionally the top global wheat exporters. However, each has faced significant wheat crop setbacks in recent seasons, mainly due to mainly due to droughts in North America and Europe. Given what have happened in the traditional world wheat exporters and the recent export ban from India. What happens to the world market for wheat? iii) Continued from the previous parts, discuss the impacts on the Canada’s terms of trade and the (domestic) market for wheat.Consider a small (home) country with the following inverse demand of: P = 200 − 3QD and inverse supplyof: P = 20 + QS for a barrel of oil. The world demand is perfectly horizontal with a price of: P^X = 100.Solve the following for the home country:A) Calculate the equilibrium price and quantityB) Calculate the consumer surplus, producer surplus (note the shape), and total surplusNow, suppose the home country opens up to free trade.C) Calculate the quantity supplied, quantity demanded, export quantity, and priceD) Calculate the consumer surplus, producer surplus, and total surplusNow, suppose the home country is open to free trade and provides an export subsidy of $15 per barrel of oil.E) Calculate the equilibrium price and quantityF) Calculate the consumer surplus, producer surplus, tax revenue, and total surplusG) Explain how the three outcomes: no trade, free trade, and trade with an export tariff, affect the homecountry (consumers, producers, and overall welfare)H) What changes if…Kawmin is a small country that produces and consumesjelly beans. The world price of jelly beans is$1 per bag, and Kawmin’s domestic demand andsupply for jelly beans are governed by the followingequations:Demand: QD = 8 − PSupply: QS = P,where P is in dollars per bag and Q is in bags of jellybeans.a. Draw a well-labeled graph of the situation inKawminif the nation does not allow trade.Calculatethe following (recalling that the area ofa triangle is ½ × base × height): the equilibriumprice and quantity, consumer surplus, producersurplus, and total surplus.b. Kawmin then opens the market to trade. Drawanother graph to describe the new situation inthe jelly bean market. Calculate the equilibriumprice, quantities of consumption and production,imports, consumer surplus, producer surplus, andtotal surplus.c. After a while, the Czar of Kawmin respondsto the pleas of jelly bean producers by placinga $1 per bag tariff on jelly bean imports. On a graph, show the effects of…
- PLEASE ANSWER AND EXPLAIN NUMBER 2 AND 3Suppose that the world demand and supply elasticities of crude oil are -0.906 and 0.515, respectively. The current equilibrium price is $30 per barrel and the equilibrium quantity is 16.88 billion barrels per year. Derive the linear demand and supply equations. Now suppose the world supply curve you derived above consists of competitive supply and OPEC supply. If the competitive supply equation is: SC = 7.78 + 0.29P, what must be OPEC's level of production in this equilibrium? Now suppose social and political unrest in some non-OPEC producing countries reduced the competitive supply by 30 percent, what happens to the world price of crude oil?Short Answer (Write the word, phrase or sentence that best completes each statement 1) Figure below depicts the supply and demand schedules of machinery for Turkey, a country that is unable to affect the world price. Turkey's supply and demand schedules of machinery are respectively depicted by Sr and Dr. Assume that Turkey imports machinery þither from the US or Germany. Suppose that the US is the world's low-cost producer who can supply machinery to Turkey at $20 per unit, while Germany can supply calculators at $30 per unit. Figure: Turkey's Machinery Trade with and w/o Customs Union Price 70 60 50 40 30 20 10 Quantity a) Consider the above figure. With free trade, Turkey imports _All_machine(s) from b) Assume Turkey levies a per-unit tariff of $20 on imports from both the US and Germany. Turkey will import machine(s) from c) Assume Turkey levies a per-unit tariff of $20 on imports from both the US and Germany. As a result of the $20 tariff, Turkey's consumer surplus falls by: $_ d)…Brazil is one of the world’s largest exporters of beef and China is a major purchaser of that beef (an estimated 30% of China’s beef imports in 2016 came from Brazil). However, in March 2017, China, South Korea, the European Union, and Chile suspended imports of meat products from Brazil as a precautionary measure in response toallegations that meat inspectors and politicians had received bribes to overlook improper meat packing practices and allow sales of tainted food. How would the closing of export markets for a country’s beef products together with a fall in domestic sales of beef products and an increase in the domestic equilibrium quantity be reflected in supply-anddemand diagrams of that country’s foreign and domestic markets for beef in the short run?
- If the United States is currently importing 14 million barrels per day at a world price of $4.00 per unit (the entire amount consumed), what is the effect on imports of a tax equal to $4.00 per unit? 1.) Using the line drawing tool, help determine the quantity of U.S. crude oil imports after the $4.00 per-unit tax by drawing a horizontal line at the price paid by U.S. consumers. Label this line + Tax'. 2.) Using the point drawing tool, determine quantity demanded at the price paid by U.S. consumers after the imposition of the import tax. Label this line 'Pop'. 3.) Using the point drawing tool, determine quantity supplied at the price paid by U.S. consumers after the imposition of the import tax. Label this line "Pas". Carefully follow the instructions above and only draw the required objects. The amount of imports after the $4.00 per-unit tax is million barrels per day. Before the tax, domestic producers supplied 0 barrels of crude oil. They now supply million barrels Price per barrel…Why is there a price hike in sugar in the Philippines?I am a bit stuck on PARTS D and E. May you please try and Solve D and E! Assume Home and Foreign countries both produce the same good. a. Home’s demand curve is D = 1250-50P, where D is quantity demanded and P is the competitive price. Home’s competitive supply curve is given by MC = 4 + S/100, where S is quantity-supplied. Assuming P = MC and D=S, solve for Home’s equilibrium price and quantity. b. Solve P when S=0 and when D=0 in order to find the vertical intercepts, and draw the supply and demand diagram. Solve for both consumer surplus and producer surplus. c. Foreign’s demand curve is also D* = 1250-50P*, but Foreign’s supply curve is given by MC* = 1 + S*/100. Assuming P* = MC* and D*=S*, solve for Foreign’s equilibrium price and quantity. Draw the supply and demand diagram for Foreign, and solve for Foreign’s consumer surplus andproducer surplus. d. Now find the free trade equilibrium, assuming no transportation costs or tariffs, by setting P = P* and D+D* = S+S*. Solve…