Question

Assume that the demand and supply curves for coffee in the US are:

Demand: P = 350 – QD Supply: P = 20 + 0.1QS

a) Determine the equilibrium prices and quantities if there is no
international trade?

b) Determine the equilibrium quantities (supply and demand) for the US if the nation can trade freely with the rest of the world at a price of 60? In another word, find out the quantity demanded and supplied in the US at this new price?

c) What is the effect of the shift from autarky to free trade on US consumer surplus, on US producer surplus, and on overall US welfare? That is, find out the autarky consumer surplus, producer surplus, and national welfare (CS+PS). Then find out the CS, PS and national welfare with the new price of 60. How have CS, PS, and welfare changed?

Answer #1

The equation for the demand and supply curves for writing
paper in Belgium is:
Demand: P = 700 – 2QD Supply: P = 40 + 0.2QS
a) Find out the equilibrium price and quantity if there is no
international trade?
b) What are the equilibrium quantities for Belgium if the
nation can trade freely with the rest of world at a price of
120?
c) What is the effect of shift from autarky to free trade on
Belgian consumer surplus?...

The demand and supply curves for Fuji apples are given by
QD = 50 – 6P and
QS = 4P – 2, where P is price
per bag and Q is in thousands of bags. What are consumer
surplus and producer surplus at the equilibrium price?
Answer Choices:
CS = $29,422; PS = $44,180
CS = $15,006; PS = $7,657
CS = $856,000; PS = $1,126,113
CS = $450; PS = $375

1) Suppose the domestic supply (QS U.S.) and demand (QDU.S) for
bicycles in the United States is represented by the following set
of equations:
QS U.S. = 2P
QDU.S. = 200 – 2P.
Demand (QD) and supply (QS) in the rest of the world is
represented by the equations:
QS = P
QD =160 – P. Quantities are measured in thousands and price, in
U.S. dollars. After the opening of free trade with the United
States, if the world price...

Suppose that the (inverse) demand for Sugar in the US is given
by, P= 75-2 Qd
where P = price per bulk bag (in dollars) and Qd =
quantity demanded (in millions of bulk bags).
Suppose the (inverse) supply of sugar is given by, P= 3
Qs
where P = price per bulk bag (in dollars) and Qs =
quantity supplied (in millions of bulk bags).
a.) Find the equilibrium price and quantity of sugar exchanged
in the US market,...

The demand and supply for Fuji apples are given by
QD = 17,500 - 25 P and
QS = 10 P, where P is price
per pound and Q is pounds of apples. What is the consumer
surplus and producer surplus at the equilibrium?
A.
CS = $500,000; PS = $1,250,000
B.
CS = $750,000; PS = $1,250,000
C.
CS = $500,000; PS = $750,000
D.
CS = $1,250,000; PS = $500,000
The market for plywood is characterized by the...

Assume the market can be described by the following supply and
demand curves.
Qs=2p
Qd=300-p
A. Solve for the equilibrium price and equilibrium quantity.
Sketch this market.
B. Solve for the consumer surplus and producer surplus in this
market.
C. If the government imposes a price ceiling of $90, does a
shortage or surplus (or neither)
develop? What are the price, quantity supplied, quantity
demanded, and the size of the
shortage or surplus (if one exists and the answers differ...

Q3. The demand and supply for bikes in NZ and AUS are given by:
NZ AUS Demand QD =100?20p QD? =70?20p? Supply QS =?20+20p QS?
=?10+20p?
(a) Calculate the autarky prices for bikes in the two
countries.
(b) Which country will export bikes when trade is opened and
why?
(c) Calculate the equilibrium world price for bikes (setting the
world demand equal to the world supply gives the world equilibrium
and the equilibrium price.) Calculate the demand, supply, and
exports/imports...

The European Union (EU) and United States (US) demand and supply
equations for corn are: QDEU = 70 – 2 PEU QSEU = 20 + 3PEU QDUS =
130 – 3PUS QSUS = 30 + PUS where QD and QS represent the quantities
demanded and supplied in both countries (in billions of tons) and P
represents the Dollar price per ton of corn in each country. a.
Graph the US and European Union supply and demand curves for corn
(what...

The demand and supply functions for a certain product are given
by p=150-0.5q and p=0.002q2+1.5, where p is in dollars
and q is the number of items.
(a) Which is the demand function?
(b) Find the equilibrium price and quantity
(c) Find the total gains from trade at the equilibrium
price.
with its demand and supply functions, suppose the price is set
artificially at $70 (which is above the equilibrium price).
(d) Find the quantity supplied and the quantity demanded...

The demand and supply for a good are respectively QD = 16 – 2P +
2I and QS = 2P – 4 with QD denoting the quantity demanded, QS the
quantity supplied, and P the price for the good. Suppose the
consumers’ income is I = 2. 6) Determine the price-elasticity of
demand if P = 2. 7) Determine the income-elasticity of demand if P
= 2. 8) Determine the price-elasticity of supply if P = 4. 9)
Determine consumers’...

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