EBK ECONOMICS
13th Edition
ISBN: 8220106799642
Author: PARKIN
Publisher: PEARSON
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Question
Chapter 7, Problem 3SPA
To determine
The equilibrium without international trade and with free trade on a graph.
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A semiconductor is a key component in your laptop, cell phone, and iPod. The table provides information about the market for semiconductors in the United States. Producers of semiconductors can get $18 a unit on the world market.
Draw a graph to illustrate the U.S. supply and demand market for semiconductors. What is the price with free international trade? What is the quantity of semiconductors produced in U.S. and total quantity bought by U.S. people and the quantity exported from other countries?
South Korea to Resume US Beef Imports
South Korea will open its market to most U.S. beef. South Korea banned
imports of U.S. beef in 2003 amid concerns over a case of mad cow disease in
the United States. The ban closed what was then the third-largest market for
U.S. beef exporters.
Source: CNN, May 29, 2008
The graph shows the market for beef in the United States. Assume that South
Korea is the only importer of U.S. beef.
Draw a point of the quantity demanded and the price when South Korea allows
imports of beef from the United States. Label this point 1.
Draw a point at the quantity supplied by U.S. beef farmers and the price when
South Korea allows imports of beef from the United States. Label this point 2.
Draw a point to show the price and quantity of beef when South Korea bans
imports of U.S. beef.
In the United States, the winners from the ban on U.S. beef are
losers are
A. producers; consumers
OB. consumers; producers
and the
12-
10-
4-
2-
Price (dollars per pound)
80
S
World…
The following graph represents the domestic supply and demand for wheat in Turkey.
$100
55
50
40
75
150 180 240
340
450
Millions of tons
a. In the absence of trade, what is the equilibrium price and equilibrium quantity?
b. The government opens the wheat market to free trade and U.S enters the Turkish market,
pricing wheat at $40 per ton. What will happen to the domestic price of wheat? What will be
the new domestic quantity supplied and domestic quantity demanded? How much wheat will
be imported from U.S?
c. The government imposes a $10 per ton tariff on all imported wheat. What will happen to
the domestic price of wheat? What will be the new domestic quantity supplied and domestic
quantity demanded? How much wheat will now be imported from U.S?
Price per ton
Chapter 7 Solutions
EBK ECONOMICS
Ch. 7.1 - Prob. 1RQCh. 7.1 - Prob. 2RQCh. 7.2 - Prob. 1RQCh. 7.2 - Prob. 2RQCh. 7.2 - Prob. 3RQCh. 7.3 - Prob. 1RQCh. 7.3 - Prob. 2RQCh. 7.3 - Prob. 3RQCh. 7.3 - Prob. 4RQCh. 7.3 - Prob. 5RQ
Ch. 7.4 - Prob. 1RQCh. 7.4 - Prob. 2RQCh. 7.4 - Prob. 3RQCh. 7.4 - Prob. 4RQCh. 7.4 - Prob. 5RQCh. 7 - Prob. 1SPACh. 7 - Prob. 2SPACh. 7 - Prob. 3SPACh. 7 - Prob. 4SPACh. 7 - Prob. 5SPACh. 7 - Prob. 6SPACh. 7 - Prob. 7SPACh. 7 - Prob. 8SPACh. 7 - Prob. 9SPACh. 7 - Prob. 10SPACh. 7 - Prob. 11SPACh. 7 - Prob. 12APACh. 7 - Prob. 13APACh. 7 - Prob. 14APACh. 7 - Prob. 15APACh. 7 - Prob. 16APACh. 7 - Prob. 17APACh. 7 - Prob. 18APACh. 7 - Prob. 19APACh. 7 - Prob. 20APACh. 7 - Prob. 21APACh. 7 - Prob. 22APACh. 7 - Prob. 23APACh. 7 - Prob. 24APACh. 7 - Prob. 25APACh. 7 - Prob. 26APACh. 7 - Prob. 27APACh. 7 - Prob. 28APA
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