Hi can uyou please answer this question Josel owns two fields: Blue field and Red field. He produces corn and wheat. Blue field has 100acres and Red field has 120 acres. In Blue field, it takes 5 acres to produce 1 bushel of corn and1 acre to produce 1 bushel of wheat. In Red field, it takes 10 acres to produce 1 bushel of cornand 3 acres to produce 1 bushel of wheat.Suppose that the government imposes a quantity restriction of 50 bushels of wheat on Bluefield and a quantity restriction of 9 bushels of corn on Red field. Under quantity restrictions, what is the minimum amount of wheat that Josel can produceefficiently?O A. Qw = 0.O B. Qw = 10.O C. Qw = 60.O D. Qw = 90.O E. None of the above.Save AnswerUnder quantity restrictions, what is the minimum amount of corn that Josel can produceefficiently?O A. Qc = 19.O B. Qc = 10.O C. Qc = 29.O D. Qc = 160.O E. None of the above.Save AnswerUnder quantity restrictions, what prices of corn and wheat lead Josel to produce only corn andno wheat?O A. Pc = $10 and Pw = $2.O B. Pc =$15 and Pw = $2.O C. Pc y =$12 and Pw = $3.O D. Po = $14 and Pw = $7.O E. None of the above.

Given that; Blue Field Red Field Corn 5 Acres=1 bushel of corn 10Acres=1 bushel of corn…

Josel owns two fields: Blue field and Red field. He produces corn and wheat. Blue field has 100 acres and Red field has 120 acres. In Blue field, it takes 5 acres to produce 1 bushel of corn and 1 acre to produce 1 bushel of wheat. In Red field, it takes 10 acres to produce 1 bushel of corn and 3 acres to produce 1 bushel of wheat. Suppose that the government imposes a quantity restriction of 50 bushels of wheat on Blue field and a quantity restriction of 9 bushels of corn on Red field.

Josel owns two fields: Blue field and Red field. He produces corn and wheat. Blue field has 100 acres and Red field has 120 acres. In Blue field, it takes 5 acres to produce 1 bushel of corn and 1 acre to produce 1 bushel of wheat. In Red field, it takes 10 acres to produce 1 bushel of corn and 3 acres to produce 1 bushel of wheat. Suppose that the government imposes a quantity restriction of 50 bushels of wheat on Blue field and a quantity restriction of 9 bushels of corn on Red field.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter6: Supply, Demand And Government Policies

Section: Chapter Questions

Problem 7PA

See similar textbooks

Similar questions

Suppose the world price of oil is $15 per barrel. At that price, the United States imports 400 million barrels daily and consumes 600 million barrels daily. The government then imposes a $5 per barrel tax on oil imports. For every dollar increase in oil prices, domestic consumption decreases by 20 million barrels per day, while domestic production increases by 40 million barrels per day. 3. What will be the cost of inefficient production, loss in consumer surplus, and deadweight loss? Use a diagram to help answer the question.
6 a) What will be the price of solar panels in the U.S. if the U.S. has free trade in solar panels? Diagrammatically show the gains from trade in solar panels. (Change in welfare as a result of free trade in solar panels compared to the situation of no trade. Show how the different components of welfare such as consumer surplus and producer surplus change.) b) Now suppose the Trump administration imposes a quota. That is, it says that it will allow the import of only 10 million panels a year (With free trade the imports would have been more than 10 million). Will the price of solar panels rise or fall in the US? Who will gain from the quota? Who will lose? Diagrammatically show the welfare impact of the quota compared to the free trade situation. (Again show the change in welfare in terms of consumer surplus, producer surplus, government revenue etc. You can assume that the government auctions quota licenses.) c) Now suppose that instead of imposing a quota, the Trump administration…
Suppose that the federal government is concerned about obesity in the United States. Congress is considering two plans. One would require "junk food" producers to include warning labels on all junk food . The other would impose a tax on all products considered to be junk food . We could illustrate the tax as producing a movement from O. Point A to Point B in Panel 1. O. Point A to Point C in Panel 2. O. Point B to Point A in Panel 1. O. Point C to Point A in Panel 2.
Suppose the demand and the supply for lumber (harvested wood processed in a sawmill) used for construction in Australia are given byQD =100 – 2PQS = 1/2PAssume also that the market is perfectly competitive.Suppose the lumber market described was closed to the rest of the world. Now it opens to trade and the world price of lumber is 20. Compute the equilibrium price, quantity supplied by domestic producers, and quantity demanded by domestic consumers.2.Use a demand and supply graph to show how consumer surplus, producer surplus, and total surplus change with international trade.3. Now suppose that Country A is a major exporter of lumber to Australia and in an effort to impose sanctions on Country A, Australia imposes a tariff of t=10 on all lumber imported into Australia. Use a graph of supply and demand to show how the tariff changes consumer, producer and total surplus.4. Calculate the equilibrium price, quantity produced and demanded domestically, tariff revenue, and deadweight loss.
A tariff is a tax on imported goods. Suppose the U.S. government cuts the tariff on imported flat screen televisions. Using the four-step analysis, how do you think the tariff reduction will affect the equilibrium price and quantity of flat screen TVS?
The United States government subsidizes many so-called green companies. For instance, it has given millions of dollars to solar panel companies. In the market for solar power, illustrate what the government subsidies mean.
Suppose that the U.S. government decides to charge wine consumers a tax. Before the tax, 15 million bottles of wine were sold every month at a price of $7 per bottle. After the tax, 9 million bottles of wine are sold every month; consumers pay $10 per bottle (including the tax), and producers receive $4 per bottle. The amount of the tax on a bottle of wine is $_______ per bottle. Of this amount, the burden that falls on consumers is $________per bottle, and the burden that falls on producers is $_______per bottle.
Suppose that the U.S. government decides to charge cola consumers a tax. Before the tax, 15 million cases of cola were sold every month at a price of $5 per case. After the tax, 9 million cases of cola are sold every month; consumers pay $6 per case (including the tax), and producers receive $2 per case. The amount of the tax on a case of cola is _____ per case. Of this amount, the burden that falls on consumers is _____ per case, and the burden that falls on producers is _____ per case. True or False: The effect of the tax on the quantity sold would have been the same as if the tax had been levied on producers.
1. Which of the following statements is true about a downward-sloping demand curve that is a straight line? The slope and the elasticity are the same at all points. The slope remains the same, but elasticity rises as you move down the demand curve. The slope remains the same, but elasticity falls as you move down the demand curve. The slope and the elasticity fall as you move down the demand curve 2. The best example of positive externality is: roller coaster rides. pollution. alcoholic beverages. education. 3. Suppose that college tuition is higher this year than last and that more students are enrolled in college this year than last year. Based on this information, we can best conclude that: despite the increase in price, quantity demanded rose due to some other factors changing. the demand for a college education is positively sloped. the law of demand is invalid. this situation has nothing to do with the law of demand. 4. Suppose…
Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 20 million bottles of wine were sold every month at a price of $5 per bottle. After the tax, 13 million bottles of wine are sold every month; consumers pay $6 per bottle, and producers receive $3 per bottle (after paying the tax). The amount of the tax on a bottle of wine is ____ per bottle. Of this amount, the burden that falls on consumers is ____ per bottle, and the burden that falls on producers is _____ per bottle. (Answer all) True or False: The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers.
Suppose that the U.S. government decides to charge wine consumers a tax. Before the tax, 25 billion bottles of wine were sold every year at a price of $7 per bottle. After the tax, 19 billion bottles of wine are sold every year; consumers pay $8 per bottle (including the tax), and producers receive $4 per bottle. The amount of the tax on a bottle of wine is per bottle. Of this amount, the burden that falls on consumers is per bottle, and the burden that falls on producers is per bottle. True or False: The effect of the tax on the quantity sold would have been smaller if the tax had been levied on producers. True False
Price ($/lb) Quantity Supplied (thousands of lbs per day) Quantity Demanded (thousands of lbs per day) 1.5 8 14 2 9 13 2.5 10 12 3 11 11 3.5 12 10 4 13 9 Now, suppose that instead of a price ceiling, the government simply pays flour sellers a subsidy of $1/lb on flour sales. How much flour would be sold? How much would consumers now pay for flour? How much would producers be paid in total for each pound of flour sold? On a separate graph, depict the equilibrium from question 1, alongside the equilibrium with the subsidy. XXXX