Modify Figure 10.10 to show how much would be sold in both sectors in the absence of anti-price gouging laws. Discuss how these quantities differ from those that result from implementing such laws. Figure 10.10
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Modify Figure 10.10 to show how much would be sold in both sectors in the absence of anti-
Figure 10.10
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- Scenario 9-1 For a small country called Boxland, the equation of the domestic demand curve for cardboard is QD = 380 − 2P, where QD represents the domestic quantity of cardboard demanded, in tons, and P represents the price of a ton of cardboard. For Boxland, the equation of the domestic supply curve for cardboard is QS = –60 + 3P, where QS represents the domestic quantity of cardboard supplied, in tons, and P again represents the price of a ton of cardboard. Refer to Scenario 9-1. Suppose the world price of cardboard is $139 and international trade is allowed. Then Boxland’s consumers demand Group of answer choices 204 tons of cardboard and Boxland’s producers supply 357 tons of cardboard. 204 tons of cardboard and Boxland’s producers supply 204 tons of cardboard. 102 tons of cardboard and Boxland’s producers supply 204 tons of cardboard. 102 tons of cardboard and Boxland’s producers supply 357 tons of cardboard.Identify the following statement's accuracy and briefly state why. government intervention is needed to assist the growth of the local economy. Import restriction is used to limit the supply of foreign products, thus artificially increasing the price of foreign products. Import restrictions such as import tax will increase the price of both foreign and local products. Market failure is the equal and efficient distribution of resources in a market. Market failure occurs due to the failure of price mechanism where the supply of a product does not equal the demand of a product, leading to an absence of an equilibrium point in the market.Country C imports 80,000 metric tons of steel from Country U and produces domestically 80,000 metric tons per year. The world price of steel is $500 per metric ton. Assuming linear schedules, research analysts estimated the price elasticity of domestic supply to be 0.50 and the price elasticity of domestic demand to be -0.25 in the current market equilibrium. Country C imposes an import duty of $150 per metric ton that caused the world price to fall by 10%. Summarise and analyse the quantity of steel produced, consumed and imported in Country C. Analyse and discuss the welfare gain from trade in Country C. Show your answers of the steel market with a proper diagram. Imports steel from Country U = 80,000 metric tons of steel Produce domestically = 80,000 metric tons per year Country C total steel consumption = 160,000 metric tons per year Price of steel per metric ton = $500
- 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.Consider a small country with only three producers, X, Y, and Z, who produce ink, pen, and paper, respectively. Y uses ink (output of X) in its production of pens. X produces 1,457 liters of ink monthly, Y produces 57,291 pens monthly, and Z produces 14 metric tons of paper monthly. X sells all of the ink it produces to Y at a market price of $338 per liter. Y sells 43,385 pens at a market price of $0.59 per pen and stores the rest as inventory. Z sells all of its paper at the market price of $781 per metric ton. The annual market value of production in this economy is $__?Please Fill in the blank for the following: is the manufacturing and/or sale of goods and/or services to satisfy the wants and needs of consumers to make a profit. ___ The domestic ________________________ is comprised of customers who live in the country where the business operates. Industries characterized by providing services to consumers and other businesses are known as ______________industries. A factory owned by a company based in another country is called a _________________ plant. The reliance of two or more nations on each other for products or services is referred to as ________________________ A(n) ________________________ market is comprised of customers who live in a different country than the one where the business operates. The type of business that creates, ships, and sells goods and services between producers, companies, and consumers located in different countries is an __________________ business.
- Suppose that the world demand and supply elasticities of crude oil are -0.906 and 0.515, respectively. The current equilibrium price is $30 per barrel and the equilibrium quantity is 16.88 billion barrels per year. Derive the linear demand and supply equations. Now suppose the world supply curve you derived above consists of competitive supply and OPEC supply. If the competitive supply equation is: SC = 7.78 + 0.29P, what must be OPEC's level of production in this equilibrium? Now suppose social and political unrest in some non-OPEC producing countries reduced the competitive supply by 30 percent, what happens to the world price of crude oil?can you reword this paragraph? Voluntary export restraint (VER) is really a restriction upon on quantity of goods which an exporting nation can export to another country. VER is self-imposed on the exporting country. As for Ghana, this country is importing food, which is an agriculturally inclined country. This means that there is something lacking with the agriculture sector if Ghana is not even able to meet the needs of its citizens’ demand. Voluntary export restraint (VER) is a type of non-tariff barriers to trade. It could be the outcome of requests made by the importing country to provide a measure of protection for its domestic businesses producing competing goods. And this is what the government of Ghana has done. VER also would temporarily increase jobs for domestic workers in the agricultural sector. Protection from VER encourages domestic producers to recruit locally. Security from foreign exchange decreases productivity in the long run. Without competition, it is not…The Energy Information Administration's forecast that world crude oil demand will likely outpace supply by 20 million barrels this year has also increased market uncertainty and driven up prices. Companies in the US steel and alumina industries have been urging the loosening of import restrictions because they fear running short of petrol. Despite the potential market effects, analysts believe that most steel and alumina companies won't be significantly impacted because crude oil only accounts for a small fraction of their overall costs. In general, rising crude oil prices are the result of a mix of supply and demand issues, market uncertainty, and other reasons. The price of this significant commodity will undoubtedly continue to be significantly influenced by global supply and demand dynamics, even though the precise trajectory of prices in the future is difficult to forecast. 1) Draw a graph to show this information.
- 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?Coffee is now the second most traded commodity in the world after crude oil. Not only has demand for various coffee products risen sharply in Western countries in recent years, increasingly there is also greater taste for coffee drinks in developing countries such as China and India. In addition, by-products of coffee beans have become popular such as coffee leaves which can be used to brew a tea with known health benefits. However, as a natural produce, coffee plants are subject to weather conditions. Recently major producers such as Brazil have been plagued by droughts. Using the demand-supply model, explain the likely effects of these phenomena in the coffee bean market. How can a market analyst use this information to her advantage?The policies of OPEC+ have nothing to do with the surge in crude prices, two sources in the group said on Monday, downplaying the likelihood of any boost to global supply from the alliance that includes Russia and Saudi Arabia. Oil spiked to its highest price since 2008 on Monday amid fears about supply shortages as the United States and European allies considered banning Russian oil, while the prospects of a swift return of Iranian crude to markets receded. At its last meeting on March 2, the Organization of the Petroleum Exporting Countries (OPEC), Russia and allied producers stuck to a plan for a modest output rise in April and ignored the Ukraine crisis in their talks. "The problem is the current market conditions have nothing to do with OPEC policy/policies. It has nothing to do with supply (production) shortfall," one of the sources said. "We all know the reasons for the current price. OPEC or OPEC+ has nothing to do with all the reasons that are driving prices to…