QUESTION 6 The following figure depicts the supply and demand schedules of calculators for Greece, a "small" country that is unable to affect the world price. Greece's supply and demand schedules of calculators are respectively depicted by SG and DG Assume that Greece imports calculators from either Germany or France. Suppose Germany is the world's low-cost producer who can supply calculators to Greece at $2 per unit, while France can supply calculators at $30 per unit. 20 10 Qay Referring to the above figure, suppose Greece forms a customs union with France. Greece will import a. 3 calculators at a per-unit price of $40 b.3 calculators at a per-unit price of $30 C.6 calculators at a per-unit price of $30 of $40

QUESTION 6 The following figure depicts the supply and demand schedules of calculators for Greece, a "small" country that is unable to affect the world price. Greece's supply and demand schedules of calculators are respectively depicted by SG and DG Assume that Greece imports calculators from either Germany or France. Suppose Germany is the world's low-cost producer who can supply calculators to Greece at $2 per unit, while France can supply calculators at $30 per unit. 20 10 Qay Referring to the above figure, suppose Greece forms a customs union with France. Greece will import a. 3 calculators at a per-unit price of $40 b.3 calculators at a per-unit price of $30 C.6 calculators at a per-unit price of $30 of $40

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter33: International Trade

Section: Chapter Questions

Problem 6SCQ: Table 33.15 shows how the average costs of production for semiconductors (the chips In computer...

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Table 33.15 shows how the average costs of production for semiconductors (the chips In computer memories) change as the quantity of semiconductors built at that factory increases. Based on these data, sketch a curve with quantity produced on the horizontal axis and average cost of production on the vertical axis. How does the curve illustrate economies of scale? If the equilibrium quantity of semiconductors demanded is 90,000, can this economy take full advantage of economies of scale? What about if quantity demanded is 70,000 semiconductors? 50,000 semiconductors? 30,000 semiconductors? Explain how international trade could make it possible for even a small economy to take full advantage of economies of scale, while also benefiting from competition and the variety offered by several producers.
Explain how a subsidy on agricultural goods like sugar adversely affects the income of foreign producers of imported sugar.
PLEASE ANSWER AND EXPLAIN NUMBER 2 AND 3Suppose 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?
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?
home cheese alc=1hr/kg wine alw=2hrs/gallon foreign cheese alc*=6hrs/kg wine alw*=3hrs/gallon Calculate the Home country's opportunity cost of producing cheese. In which product does the Home (Foreign* ) country has an absolute advantage? Show in which product does the Home (Foreign* ) country has comparative advantage? Calculate the relative supply (RS) With trade, what is the equilibrium range that the relative price of cheese to wine will settle? Supposing that the intersection of RS and RD occurs at PC /PW = 1, what is the implication?
given the following table for obtaining points on country A's offer curve: possible term of trade Qty of imports of good Y demand qty of exports of good X supplied 1X:1Y 40 units 40 units 1X:2Y 90 units r 1X:3Y 120 units s in this table, a. r = 45 units, s = 40 units b. r = 180 units, s = 40 units c. r = 45 units, s = 360 units d. r = 180 units, s = 360 units
Assume that Home and Foreign produce only two goods – Cars and Tvs. Home has 400 units of labour available. In Home, the unit labour requirement in car production is 40 and in TV production it is 20. On the other hand, Foreign has 450 units of labour available. Foreign’s unit labour requirement in car production is 75, while in TV production it is 15. i. Suppose that the number of workers increases from 400 to 800 in Home. Find the new equilibrium relative price. What can you say about the efficiency of world production and the gains from trade between Home and Foreign in this case? j. Suppose that Home has now 800 workers, but they are only half as productive in both industries as we have been assuming. Consider Foreign to have the initial 450 workers only and the same productivity in both industries. Construct the world relative supply curve and determine the equilibrium relative price. How do the gains from trade compare with those in the case described in problem h.
a) Due to Covid-19, meatpackers are facing substantially higher costs and people are panic buying meat. As a result, we can expect (at least temporarily) Lower prices and no change in quantity Higher prices and an uncertain change in quantity Higher prices and a certain increase in quantity Higher prices and a certain decrease in quantity b) If, against the request of the US, Saudi Arabia decides to further increase the supply of crude oil to the world market, we would expect as a result that (all else equal) the Equilibrium price of crude oil will decrease, and the equilibrium quantity will increase Equilibrium price of crude oil will increase, and the equilibrium quantity will decrease Equilibrium price and quantity of crude oil will increase Equilibrium price and quantity of crude oil will decrease
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?
suppose you ar etrying to determine the aftereffects of hurricane Katrina on the economy of Louisiana. Which assumptions could be made to simplify the study? Note that not all statements may be placed. 1. consider the effects on all of Louisiana's interstate trade partnters 2. focus on just the crawfish-and catfish-farming industries in Louisiana 3. determin the effects while holding the infrastructure and factors of production constant 4. track the total net worth of the output produced by the state prior to the hurrican and after the hurricane 5. compare the change in prices for all goods
Qus4 If one person has the absolute advantage in producing both of two goods, then that person Group of answer choices cannot have a comparative advantage in either good should specialize in the production of both goods will have the comparative advantage in only one good cannot benefit from trade must also have a comparative advantage in both goods
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…