For all questions, refer to the graph on the reverse side. Use this graph for 1 – 4. The graph represents the market for coffee. Estimation may be necessary, so show work. Assuming the market outcome, and a world price of $6.50 calculate the following: Price = $6.50 Qddom = 60 units Qsdom = 160 units Imports or exports = Qs is greater than Qd so the country ia an exporter. Export is 100 units Redo all parts of #1 assuming a world price of $3.50. Redo all parts of #1 assuming a world price of $3.50 and a tariff of $0.50. Redo all parts of #1 assuming a world price of $3.50 and a quota of 60.
For all questions, refer to the graph on the reverse side. Use this graph for 1 – 4. The graph represents the market for coffee. Estimation may be necessary, so show work. Assuming the market outcome, and a world price of $6.50 calculate the following: Price = $6.50 Qddom = 60 units Qsdom = 160 units Imports or exports = Qs is greater than Qd so the country ia an exporter. Export is 100 units Redo all parts of #1 assuming a world price of $3.50. Redo all parts of #1 assuming a world price of $3.50 and a tariff of $0.50. Redo all parts of #1 assuming a world price of $3.50 and a quota of 60.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
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For all questions, refer to the graph on the reverse side. Use this graph for 1 – 4. The graph represents the market for coffee. Estimation may be necessary, so show work.
- Assuming the market outcome, and a world
price of $6.50 calculate the following:- Price = $6.50
- Qddom = 60 units
- Qsdom = 160 units
- Imports or exports = Qs is greater than Qd so the country ia an exporter. Export is 100 units
- Redo all parts of #1 assuming a world price of $3.50.
- Redo all parts of #1 assuming a world price of $3.50 and a tariff of $0.50.
- Redo all parts of #1 assuming a world price of $3.50 and a quota of 60.
- Assuming the market outcome, and a world
Transcribed Image Text:Priceſ
Suppty
7.00
5.00
3.00
Demand
2.00
1.00
0.50
10 20 30 40
60
80
100
140
Quantity
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