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Consider that the market for ethanol in Brazil is described by the following equations: Demand: P = 20-0.5Q Supply: P = 5+Q If the government of Brazil allows free trade and the world price is $10, then a. Brazil will import 5 barrels of ethanol per day. b. Brazil will export 10 barrels of ethanol per day. Oc. Brazil will export 15 barrels of ethanol per day. Brazil will import 15 barrels of ethanol per day. d.

Consider that the market for ethanol in Brazil is described by the following equations: Demand: P = 20-0.5Q Supply: P = 5+Q If the government of Brazil allows free trade and the world price is $10, then a. Brazil will import 5 barrels of ethanol per day. b. Brazil will export 10 barrels of ethanol per day. Oc. Brazil will export 15 barrels of ethanol per day. Brazil will import 15 barrels of ethanol per day. d.

Exploring Economics
Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter28: International Trade
Section: Chapter Questions
Problem 9P
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Consider that the market for ethanol in Brazil is described by the following equations: Demand: P = 20-0.5Q Supply: P = 5 + Q If the government of Brazil allows free trade and the world price is $10, then a. Brazil will import 5 barrels of ethanol per day. b. Brazil will export 10 barrels of ethanol per day. c. Brazil will export 15 barrels of ethanol per day. Brazil will import 15 barrels of ethanol per day. d.
Transcribed Image Text:Consider that the market for ethanol in Brazil is described by the following equations: Demand: P = 20-0.5Q Supply: P = 5 + Q If the government of Brazil allows free trade and the world price is $10, then a. Brazil will import 5 barrels of ethanol per day. b. Brazil will export 10 barrels of ethanol per day. c. Brazil will export 15 barrels of ethanol per day. Brazil will import 15 barrels of ethanol per day. d.
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