Read and answer question one. (May contain multiple parts). RUSSIA MAY SET PRICE CEILING FOR STAPLE FOODS AS DROUGHT FUELS INFLATION14 August 2010 - by Anton Doroshev & Maria Levitov (Bloomberg)1. Russia may set retail price cellings for basic foods, Deputy Industry and Trade Minister Stanislav Naumov said. The worst drought in atleast 50 years has slashed harvests across Russia, fueling inflation.Naumov told reporters today in Moscow "It's necessary to institute amaximum retail price for those products that are in short supply".President Dmitry Medvedev's top economic advisor said he opposesimposing maximum prices.A) Suppose the following data represents themarket for Russian staple foods. Use this datato construct the graph for this market.B) At equilibrium, what are the following?a) Price:b) Quantity Demanded:c) Quantity Supplied:Price (Rubles)DemandSupply600200C) Suppose Stanislav Naumov decides to put aprice ceiling at 3 rubles. Draw this price ceilingon the graph.25502503500300a) New quantity demanded:b) New quantity supplied:c) Amount of shortage:4450350400400350450D) Why might Dmitry Medvedev's top economicadvisor oppose a price ceiling?Russian Staple Foods1100200300400500600700Price (Rubles)

As there are multiple parts, only first three would be answered, to get the answer of the rest of…

A) Suppose the following data represents the market for Russian staple foods. Use this data to construct the graph for this market. B) At equilibrium, what are the following? a) Price: b) Quantity Demanded: Price (Rubles) c) Quantity Supplied: Demand Supply 600 200 C) Suppose Stanislav Naumov decides to put a price ceiling at 3 rubles. Draw this price ceiling on the graph. a) New quantity demanded: b) New quantity supplied: c) Amount of shortage: 550 250 3 500 300 4 450 350 400 400 350 450

A) Suppose the following data represents the market for Russian staple foods. Use this data to construct the graph for this market. B) At equilibrium, what are the following? a) Price: b) Quantity Demanded: Price (Rubles) c) Quantity Supplied: Demand Supply 600 200 C) Suppose Stanislav Naumov decides to put a price ceiling at 3 rubles. Draw this price ceiling on the graph. a) New quantity demanded: b) New quantity supplied: c) Amount of shortage: 550 250 3 500 300 4 450 350 400 400 350 450

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter4: Labor And Financial Markets

Section: Chapter Questions

Problem 30P: Predict how each of the following economic changes will affect the equilibrium price and quantity in...

See similar textbooks

Similar questions

Predict how each of the following economic changes will affect the equilibrium price and quantity in the financial market for home loans. Sketch a demand and supply diagram to support your answers. The number of people at the most common ages for home-buying increases. People gain confidence that the economy is growing and that their jobs are secure. Banks that have made home loans find that a larger number of people than they expected are not repaying these loans. Because of a threat of a war, people become uncertain about their economic future. The overall level of saving, in the economy diminishes. The federal government changes its bank regulations in a way that makes it cheaper and easier for banks to make home loans.
The minimum wage hike will mean a spike in unemployment: Study saysBy Jane Stevenson, Toronto Sun, September 19, 2017The Canadian Ontario government plans to set a minimum wage at $15 an hour. Currently, the median wage for low-skilled workers is $11.40. According to a study released Tuesday by the free enterprise Fraser Institute, the imposition of a minimum wage above current wages would lead to more unemployment for low-skilled workers. (D) (i) Below, complete the market for low-skill labor correctly labeling both axes and assuming demand for low-skill labor is perfectly inelastic; (ii) from information in the article, set out in the market the current equilibrium “price” and depict the equilibrium quantity for low-skill labor. (E) (i) Depict in the market above in (D) the establishment of a $15/hour minimum wage by the Canadian Ontario government, and (ii) set out in the market the new equilibrium “price” and the new equilibrium quantity for low-skill labor. (F) Is the graph…
The minimum wage hike will mean a spike in unemployment: Study saysBy Jane Stevenson, Toronto Sun, September 19, 2017The Canadian Ontario government plans to set a minimum wage at $15 an hour. Currently, the median wage for low-skilled workers is $11.40. According to a study released Tuesday by the free enterprise Fraser Institute, the imposition of a minimum wage above current wages would lead to more unemployment for low-skilled workers. (A) (i) Below, complete the market for low-skill labor correctly labeling both axes and assuming the demand for labor has some elasticity; (ii) by the supply curve and demand curves, state who are the demanders and who are the suppliers; and (iii) from information in the article, set out in the market the current equilibrium “price” and depict the equilibrium quantity for low-skill labor. (B) (i) Depict in the market above in (A) the establishment of a $15/hour minimum wage by the Canadian Ontario government, and (ii) set out in the market the new…
explain why: a)the price of oil could have increased between 2004 and 2008. b) the price of oil could have fallen in 2008.
The 2019/20 Australia Bushfires affected food production nearly in New South Wales, Queensland and Victoria that are regarded as the food basket for Australia. Assume that before, the bushfire, in 2017/18 Australia produced 80,000 metric tons. Also, assuime that after the bushfire devastation in 2019/20 Australia produced 50,000 metric tons of rice. Finally, assume that during the same period 2017/18 and 2019/20 the price rice in Australia rose from AUD 1.75 per kg to AUD 3.00 per kg respectively. Explain the impact of the bushfires on the rice market in New South Wales with Demand and Supply model.
The 2019/20 Australia Bushfires affected food production nearly in New South Wales, Queensland and Victoria that are regarded as the food basket for Australia. Assume that before, the bushfire, in 2017/18 Australia produced 80,000 metric tons. Also, assuime that after the bushfire devastation in 2019/20 Australia produced 50,000 metric tons of rice. Finally, assume that during the same period 2017/18 and 2019/20 the price rice in Australia rose from AUD 1.75 per kg to AUD 3.00 per kg respectively. Use the Demand and Supply Model below to answer the questions that follow. *Picture attached. 1.Use the Demand and Supply Model above to explain the impact of the bushfires on the rice market in New South Wales. 2.Use the mid-point approach to calculate the price elasticity of demand for rice in Australia. 3.What is the price elasticity of demand for rice? Based on your answer, is rice a necessity commodity? Explain your answer.
The 2019/20 Australia Bushfires affected food production nearly in New South Wales, Queensland and Victoria that are regarded as the food basket for Australia. Assume that before, the bushfire, in 2017/18 Australia produced 80,000 metric tons. Also, assuime that after the bushfire devastation in 2019/20 Australia produced 50,000 metric tons of rice. Finally, assume that during the same period 2017/18 and 2019/20 the price rice in Australia rose from AUD 1.75 per kg to AUD 3.00 per kg respectively. 1. Use the mid-point approach to calculate the price elasticity of demand for rice in Australia. 2. What is the price elasticity of demand for rice? Based on your answer, is rice a necessity commodity? Explain your answer.
Analysts say that the increase in gasoline prices comes a drop in SUV sales and trade-in values at dealerships.The U.S. Department of energy said that during the past week, U.S. gasoline topped $3 a gallon - the highest level since October 2008. According to Alec Gutierrez,lead analyst for vehicle evaluation at Kelley Blue Book, SUV sales have decreased about 1 percent since the last major gasoline price hike in spring 2008. He doesn't believe that SUV sales will decrease significantly unless prices reach $3.50 to $4 per gallon. if a gasoline price hike of 5 percent caused the SUV sales drop described, what is the cross-price elasticity of demand between gasoline and SUVs?
Explain how prices are quoted.
urgently need Extract: Rising Global Food Prices In 2009, the World Bank reported that global food prices had almost doubled since 2005 and were forecast to continue to increase. The price of wheat especially had increased at an alarming rate of around 200% from 2008 to the end of 2009. The prices of maize (corn) and rice had also escalated. In November 2009, the Indian government reported that annual rise in food price was 21%, the price of pulses (lentils) had risen by over 30% and so had sugar prices. In Pakistan, food prices had also increased to a record high amidst claims of hoarding by grain processors and retailers. Usually, price changes for cereals can be attributed to short-term variations in supply caused by bad weather conditions. This was not the case for the latest price increases which were caused largely by demand side factors which included: the rising demand for meat in the fast growing economies of China and India; large quantities of grain are needed to feed…
Q.6. a. The following data is available on the demand for groundnut oil in India: Year Price Index Quantity Demanded ( in 000 tons) 1971 105 200 1975 120 300 1980 140 600 The above data proves the law of demand wrong. Do you agree? Discuss.
The accompanying graph shows the labor market in the country of Harmonia. Assume that the Harmonia labor market is in equilibrium the Harmonian government decides to enact a minimum wage of $6.A. Show the new minimum wage on the graph by shifting the minimum wage line. B. What is the increase in unemployment as a result of the minimum wage?C. Which type of unemployment is affected by the new minimum wage?