In the figure below, Sai is the long-run domestic supply curve of oil without considering the climate change damages resulting from burning more oil, Sa2 is the domestic supply curve that includes these per-unit damages. Imported foreign oil is reflected by three supply curves: Pwi reflects the observed world price, Pw2 includes a "vulnerability premium" due to national security in addition to world price, and Pw3 adds in the per-unit climate change damage due to consuming more imported oil. $/Unit Domestic Demand Pw2 Pw1 A B C D Consumption 1) In an efficient allocation when the national security and climate change considerations are incorporated, identify the amount of oil produced domestically and the amount of oil (or market demand) imported from the rest of the world.
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- 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?Q.2 Suppose the demand in the poor country is P=100- 9Q and supply is P=Q. Suppose the supply in the poor country is different from the one in country A only because it faces less strict environmental regulations. That is, in country B it costs firms Q to produce Q units, whereas it costs 2Q in country A to produce quantity Q. Draw country B’s demand and supply diagram in 'autarky' with the standard axes (P vertical, Q horizontal). Mark carefully on the diagram the demand curve, the supply curve, and then work out the equilibrium (show working out and the numbers not just the point) . How large is welfare under autarky ?Suppose you are given values for C = 350 + 0.6 (Y - T), Ip = 200, G = 150, G* = 170, M = 0, X = 0, T = 190, T* = 140, t = 0 Where G* and T* are the corresponding foreign counterparts to the domestic variables without an Asterix. How do I incorporate the G* and T* values when calculating short run equilibrium output? I am aware how to calculate the short run equilibrium output without the G* and T* values. So please do not answer this question if you are not going to include the G* and T* values or are not going to provide an explanation as to how to deal with these values.
- Sometimes the exports of developing nations are concentrated in only one or a few primary products. For example, according to World Bank data, coffee constitutes almost 90% of Burundi’s total exports. Therefore, changes in demand or supply of coffee can have significant effects on the health of Burundi’s economy. The current world price of coffee is $5.00 per pound, but there is uncertainty about the shape of the demand and supply curves. The following graphs (scenario A and scenario B) show two possibilities for demand and supply in the market for coffee. Suppose that favorable growing conditions cause an increase in the global supply of coffee. On the following graph, shift the demand or supply curve of scenario A to show what happens in the market for coffee as a result of this event. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it…Meagan, a contractor, is hired to install cabinets in a new home and has to decide whether to build the cabinets herself or purchase them from a local cabinet shop. a. Meagan should build the cabinets herself only if the cabinet maker has a comparative advantage in the production of cabinets. -she has a comparative advantage in the production of cabinets. -she has an absolute advantage in the production of cabinets. -the cabinet maker has an absolute advantage in the production of cabinets. b. If the cabinet maker is foreign rather than local, the answer to part a -does change regardless of trade costs. -does not change regardless of trade costs. -does change as long as trade costs are negligible. -does not change as long as trade costs are negligible.Let us consider the case of Good X in Malaysia. The demand and supply functions for Good X in Malaysia are Demand function: QD=363−2P Supply function: QS=22+P If the world price is 70, then is Malaysia an importer or exporter? Find out the quantity of imports at Pw=70 If import quota was 80 units what will be the new price in the Malaysian market? How many Good X will be produced domestically after quota has been implemented? How many Good X will be consumed by domestic consumers after quota has been implemented? What will be the import after implementing import quota of 80 units? (Please give your answers in two decimal places) What is the percentage change in imports after the imposition of import quota? Please give your answers in two decimal places, Multiply by 100 to convert into percenatge (if you get 0.40 then submit 40 in the answer)
- pics is just for reference i need Q20 solution Question 20 Refer to Table 1-1 in Question 11 and your answers to questions 11-18. (Same scenario as Q 19) Assume that Derryland and Whetonia each has 40 labor hours available and that there is no trade. Each country consumes what it produces. Assume now that, without trade, Derryland spent 28 hours producing cheese and the remaining 12 hours producing bread. Whetonia spent 20 hours producing cheese and 20 hours producing bread. What is the total output of BREAD produced by both countries combined?Why do booms and recessions tend to be transmitted across national borders? Please frame your answer within the context of the COVID-19 impact in the economy.Internationalimmobilityof resources is compensatedbytheinternationalflowof goods. Justify the statement
- The following graph shows the domestic market for oil in the United States, where SDSD is the domestic supply curve, and DDDD is the domestic demand curve. Assume the United States is considered a large nation, meaning that changes in the quantity of its imports due to a tariff influence the world price of oil. Under free trade, the United States faced a total supply schedule of SD+WSD+W, which shows the quantity of oil that both domestic and foreign producers together offer domestic consumers. In this case, the free-trade equilibrium (black plus) occurs at a price of $240 per barrel of oil and a quantity of 9 million barrels. At this price, the United States imports 6 million barrels of oil. Suppose the U.S. government imposes a $60-per-barrel tariff on oil imports.7 Q. China is known to price its exports differently in international markets compared to price in its domestic market. What would be the economic rational for segmenting markets? What can the importing country do to prevent or retaliate against such pricing?Explanation of four factors which can shiftthe world demand foroil, indicating clearly the direction of the shifto Explanation of four factors which can shiftthe world supply of oil, indicating clearly the direction of the shift.