the US market of sunflower oil was described by the following domestic supply and demand equations: QDUS = 8000 - 4 P and QSUS = -2000 + 6 P where QDUS and QSUS represent the quantities demanded and supplied (in billions of metric tons) and P is the price per metric ton of sunflower oil (in $). Now add this information: In 2008, China entered into the World Trade Organization and became the largest importer of US sunflower oil. Assume the Chinese import demand for sunflower oil from the US in 2008 was QDCHINA = 20000 - 10 P Given this information, what was the new equilibrium price of sunflower oil in 2008? (Hint: what is the total demand for US sunflower oil?) $1600 $1400 $1000 $1500

the US market of sunflower oil was described by the following domestic supply and demand equations: QDUS = 8000 - 4 P and QSUS = -2000 + 6 P where QDUS and QSUS represent the quantities demanded and supplied (in billions of metric tons) and P is the price per metric ton of sunflower oil (in $). Now add this information: In 2008, China entered into the World Trade Organization and became the largest importer of US sunflower oil. Assume the Chinese import demand for sunflower oil from the US in 2008 was QDCHINA = 20000 - 10 P Given this information, what was the new equilibrium price of sunflower oil in 2008? (Hint: what is the total demand for US sunflower oil?) $1600 $1400 $1000 $1500

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter4: Supply And Demand: An Initial Look

Section: Chapter Questions

Problem 3TY

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