The New York Times (Nov. 30, 1993) reported that "the inability of OPEC to agree last week to cut production has sent the oil market into turmoil ... [leading to] the lowest price for domestic crude oil since June 1990." Statements True False The members of OPEC were trying to agree to cut production so they could lower the price. OPEC was unable to agree on cutting production because each country has a different production capacity. The newspaper also noted OPEC's view "that producing nations outside the organization, like Norway and Britain, should do their share and cut production." What does the phrase "do their share" suggest about OPEC's desired relationship with Norway and Britain? O OPEC would like Norway and Britain to act competitively. O OPEC would like Norway and Britain to join the cartel. O OPEC would like Norway and Britain to keep their production levels high.
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- The Government of Canada recently signed new preferential trade agreement, and has agreed to paysubsidies to turkey farmers to compensate for increased competition they may face from imports. Youare employed as an analyst by AAFC. In order to determine the dollar value of compensation, AAFCrequires an estimate of how the Canadian price of turkeys and the quantity of imported turkeys willchange as a result of the new trade agreement. You are provided with the following information about the Canadian turkey market:1. The world price of turkey is $5.2. The Canadian turkey market is currently (before the new trade agreement) protected by a tariffrate quota (TRQ) of the following format:a) the in-quota tariff is $1 per unitb) the import quota volume is 100 unitsc) the over-quota tariff is $10 per unit.3. An excess demand (ED) (for imports) function for turkey has been estimated as? = 28 − 0.14?. a) Draw the diagram for imports in this market, and solve for the Canadian turkey price and the…The Government of Canada recently signed new preferential trade agreement, and has agreed to paysubsidies to turkey farmers to compensate for increased competition they may face from imports. Youare employed as an analyst by AAFC. In order to determine the dollar value of compensation, AAFCrequires an estimate of how the Canadian price of turkeys and the quantity of imported turkeys willchange as a result of the new trade agreement.You are provided with the following information about the Canadian turkey market:1. The world price of turkey is $5.2. The Canadian turkey market is currently (before the new trade agreement) protected by a tariffrate quota (TRQ) of the following format:a) the in-quota tariff is $1 per unitb) the import quota volume is 100 unitsc) the over-quota tariff is $10 per unit.3. An excess demand (ED) (for imports) function for turkey has been estimated as? = 28 − 0.14?. Note: Canada is a small importing country in the world market for turkeys. Note: The data given…Explain and discuss the role of imports in an open competitive market. In you answer cover the followings: a) In what circumstances the market may have a necessity to import a particular good? Explain your answer using appropriate graph. b) How does a tariff on import affect the market and what problems does this kind of intervention create?Explain you answer using appropriate graph.
- The following graphs show the relationship between the price of peaches and the quantity of peaches supplied in two different regions, the North and the and South. Assume that the two lines are parallel. In the North, if the price goes down by $0.40 per pound, then the quantity supplied in the North goes down by 600 pounds per year. If the price of peaches goes down by $0.40 in the South, what will happen to the quantity supplied? A. There is not enough information given to determine the supply change in the South. B. The quantity will decrease by 600 pounds per year. C. The quantity will increase by 600 pounds per year. D. The quantity will increase by 300 pounds per year.Tornado Bulbul hits Bangladesh and affects the crops and fish hatcheries in the coastal areas.What will happen to shrimp production if the hatcheries were affected due to the tornado? Howwill it affect the equilibrium price and quantity of the local shrimp market? On the other hand, if aneighboring country, who exports crops and fishes to Bangladesh, experiences a bumper harvestand export their surplus products to us, say shrimp, what will happen to the equilibrium price andquantity of local shrimp market again in Bangladesh? Draw a diagram and explain your answer.Assume that the markets for sugar cane, rum and whiskey are initially in equilibrium(i.e., supply equals demand in each case). Assume further that a good harvest impactsthe world’s sugar cane crop. Sugar cane is a principal ingredient in rum, but it is notan ingredient in whiskey. Rum and whiskey are substitutes in consumption.(i) Discuss the impact of the good harvest on each of the three markets.
- In early 1998, Luis Tellez, Mexico’s oil minister, held a secret meeting with his Saudi Arabian counterparts. As a government official, he decides how many barrels of oil Mexico would produce and sell to other countries. The purpose of a secret meeting was to increase earnings, or revenues, from selling oil by raising world price of oil, which had fallen 50% over the previous two years. The low oil price was creating serious problems for both governments. A plan to increase oil price will not succeed unless other oil-exporting countries were willing to reduce oil production. Why? Why not just raise prices? To make the plan work, Tellez had to persuade his fellow oil ministers to produce less. But how much less? What information he needs to know in order to answer this question?please help mw with this question. Thank you Question 2 Consider a country that produces two goods wheat (W) and cotton (C) with two factors of production: land (T) and labor (L). The technology for wheat and cotton are as follows. Each unit of wheat requires 10 units of labor and 1 unit of land. Each unit of cotton requires 30 units of labor and 1 unit of land. Denote the wage by w and the rent of land by r. a. Suppose a country has 500 units of labor and 20 units of land. Determine the allocation of labor and land between the two goods algebraically and then show it diagrammatically. How much of wheat and cotton are produced in the economy? b. Now suppose that the labor supply increases to 540 units. Determine the allocation of labor and land between the two goods algebraically and then show them diagrammatically. Verify the Rybczynski’s theorem. c. Now Suppose Malaysia has 500 units of labor and 20 units of land, while Indonesia has 80 units of land and 8000 units of labor. Which…Assume that the markets for sugar cane, rum and whiskey are initially in equilibrium (i.e., supply equals demand in each case). Assume further that a good harvest impacts the world’s sugar cane crop. Sugar cane is a principal ingredient in rum, but it is not an ingredient in whiskey. Rum and whiskey are substitutes in consumption. Discuss the impact of the good harvest on each of the three markets. Discuss the effect on the markets for each of the three products if the government implements a price restriction in the sugar cane market with the aim of protecting the farmers. How will this impact the revenues for sugar growers, rum producers and whiskey producers?
- The 2019/20 Australia Bushfires affected food production nearly in New South Wales, Queensland and Victoria that are regarded as the food basket for Australia. Assume that before, the bushfire, in 2017/18 Australia produced 80,000 metric tons. Also, assuime that after the bushfire devastation in 2019/20 Australia produced 50,000 metric tons of rice. Finally, assume that during the same period 2017/18 and 2019/20 the price rice in Australia rose from AUD 1.75 per kg to AUD 3.00 per kg respectively. Use the Demand and Supply Model below to answer the questions that follow. Q. Use the mid-point approach to calculate the price elasticity of demand for rice in Australia.The 2019/20 Australia Bushfires affected food production nearly in New South Wales, Queensland and Victoria that are regarded as the food basket for Australia. Assume that before, the bushfire, in 2017/18 Australia produced 80,000 metric tons. Also, assuime that after the bushfire devastation in 2019/20 Australia produced 50,000 metric tons of rice. Finally, assume that during the same period 2017/18 and 2019/20 the price rice in Australia rose from AUD 1.75 per kg to AUD 3.00 per kg respectively. Use the Demand and Supply Model below to answer the questions that follow. *Picture attached. 1.Use the Demand and Supply Model above to explain the impact of the bushfires on the rice market in New South Wales. 2.Use the mid-point approach to calculate the price elasticity of demand for rice in Australia. 3.What is the price elasticity of demand for rice? Based on your answer, is rice a necessity commodity? Explain your answer.The 2019/20 Australia Bushfires affected food production nearly in New South Wales, Queensland and Victoria that are regarded as the food basket for Australia. Assume that before, the bushfire, in 2017/18 Australia produced 80,000 metric tons. Also, assuime that after the bushfire devastation in 2019/20 Australia produced 50,000 metric tons of rice. Finally, assume that during the same period 2017/18 and 2019/20 the price rice in Australia rose from AUD 1.75 per kg to AUD 3.00 per kg respectively. 1. Use the mid-point approach to calculate the price elasticity of demand for rice in Australia. 2. What is the price elasticity of demand for rice? Based on your answer, is rice a necessity commodity? Explain your answer.