A semiconductor is a key component in your laptop, cell phone, and iPod. The table provides information about the market for semiconductors in the United States. Producers of semiconductors can get $18 a unit on the world market. PRICE ( DOLLAR PER UNIT) QUANTITY DEMANDED (billions of units per year) QUANTITY SUPPLIED (billions of unit per year) 10 25 0 12 20 20 14 15 40 16 10 60 18 5 80 20 0 100 a.With no international trade, what would be the price of a semiconductor and how many semiconductors a year would be bought and sold in the United States? b.Does the United States have a comparative advantage in producing semiconductors? c. Draw a graph (graph is for your own reference, not required to be attached in the answer sheet)to illustratethe U.S. supply and demand market for semiconductors. What is the price with free international trade? What is the quantity of semiconductors produced in U.S.and total quantity bought by U.S. people and the quantity exportedfrom other countries?
A semiconductor is a key component in your laptop, cell phone, and iPod. The table provides information about the market for semiconductors in the United States. Producers of semiconductors can get $18 a unit on the world market.
| PRICE ( DOLLAR PER UNIT) |
QUANTITY DEMANDED (billions of units per year) |
QUANTITY SUPPLIED (billions of unit per year) |
| 10 | 25 | 0 |
| 12 | 20 | 20 |
| 14 | 15 | 40 |
| 16 | 10 | 60 |
| 18 | 5 | 80 |
| 20 | 0 | 100 |
a.With no international trade, what would be the price of a semiconductor and how many semiconductors a year would be bought and sold in the United States?
b.Does the United States have a
c. Draw a graph (graph is for your own reference, not required to be attached in the answer sheet)to illustratethe U.S. supply and demand market for semiconductors. What is the price with free international trade? What is the quantity of semiconductors produced in U.S.and total quantity bought by U.S. people and the quantity exportedfrom other countries?
d. Due to loss of competitiveness brought on by appreciation of the exchange rate and the high production costs, U.S.government reducethe export(or limit the supply of domestic producers) by imposing an export quota of 20 billionunits per year. What happens to U.S. price of semiconductors, the quantity of semiconductors boughtby U.S. people, and the quantity of semiconductors exported? use equation to calculate the equilibrium
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