2. In contrast to brussels sprouts, Canada is a major exporter of wheat. Canada'sdemand (QPCDN) and supply (QSCDN) of wheat is given respectively byQCDN=600-40 PCDN and QCDN180 + 20 PCDNwhere P is the price per bushel of wheat.a) Derive the excess supply curve of wheat for Canada.b) What will be the price at which Canada does not export wheat?c) China is the major importer of Canadian wheat. Its demand (Q) and supply(QSH) for wheat is given respectively byQ°r = 500 – 10 PHandQ n = 170 + 5 PaDerive the excess demand curve for wheat in China.d) What would wheat price be in China in the absence of trade?e) If Canada and China are allowed to trade with one another, what will be the priceand the volume of trade? tof) The trade war has heated up and China imposes a tariff of $5.00 per bushel.Determine the effect of the tariff on: (1) the price of wheat in each country, (2)the quantity of wheat produced and consumed in each country, and (3) thevolume of tradeg) Properly label to illustrate the excess demand for China and excess supply curvefor Canada on the same graph with free trade and with the import tariff of $5imposed. ( rks).

The equilibrium occurs where the demand and supply are equal. The excess supply is the difference…

In contrast to brussels sprouts, Canada is a major exporter of wheat. Canada's demand (QCDN) and supply (QCDN) of wheat is given respectively by QCDN 180 + 20 PCDN QCDN=600-40 PCDN and where P is the price per bushel of wheat. a) Derive the excess supply curve of wheat for Canada. = b) What will be the price at which Canada does not export wheat? c) China is the major importer of Canadian wheat. Its demand (Q) and supply (QSH) for wheat is given respectively by QPH = 500 - 10 PH and Ợ n = 170 + 5 PH

In contrast to brussels sprouts, Canada is a major exporter of wheat. Canada's demand (QCDN) and supply (QCDN) of wheat is given respectively by QCDN 180 + 20 PCDN QCDN=600-40 PCDN and where P is the price per bushel of wheat. a) Derive the excess supply curve of wheat for Canada. = b) What will be the price at which Canada does not export wheat? c) China is the major importer of Canadian wheat. Its demand (Q) and supply (QSH) for wheat is given respectively by QPH = 500 - 10 PH and Ợ n = 170 + 5 PH

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter6: Elasticity

Section: Chapter Questions

Problem 11QP: Suppose you learned that the price elasticity of demand for wheat is 0.7 between the current price...

See similar textbooks

Similar questions

How would new and improved crop rotation technique is discovered affect U.S market supply for corn
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?
4. Currently the equilibrium price and quantity in the milk market are $4 per gallon and 100,000 gallons. The Price Elasticity of Demand is determined to be 0.80 while the Price Elasticity of Supply is determined to be 1.20. A price floor is set at 20% above the current equilibrium price. (a) Determine the dollar amount of the price floor. (b) Determine the Qs after the price is imposed. (c) Determine the Qd after the price is imposed.
The price of oil is currently over $80 per barrel and has been as high as $90 per barrel after Saudi Arabia and a couple of oter OPEC countries reduced output this year. The demand for oil is expected to increase by 1 million barely per day over the next year according to the International Energy Agency but OPEC+ has been unclear about its intentions of increasing oil supplies. a. If OPEC+ increases its production by million barrels per day, we can unambiguously say that the equilibrium price will fall, and the equilibrium quantity will rise.
Dress Shoes Price P1 Q1 Quantity Reductions in cattle herds and restrictions on imports reduce the supply of leather in your country and increase its price. In the domestic market for dress shoes shown above, what happens as the increased price of leather raises the cost of producing shoes? Select one: a. D shifts to the right, so P rises and Q rises. Ob. S shifts to the right, so P falls and Q rises. c. D shifts to the left, so P falls and Q falls. O d. S shifts to the left, so P rises and Q falls.
Illustrate and explain the effect of the increased use of plant-based milk on the overall milk market.
Answer b and c Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh Q1 = 12 – P1 Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) a. Determine the company’s total profit function. Also, (i) What are the profit maximizing levels of price and output for the two markets? (ii) Calculate the marginal revenues in each market. b. Now consider two cases: (i) Company is effectively able to price discriminate in thetwo markets. What will be the total profits? (ii) Suppose the company does not engage in price discrimination. By charging thesameprice in the two markets what are the profit maximizing levels of price,output, and the total profits? c. Analyze,…
The supply of Pespi is given by the following equation: Q p S = −24 + 6Pp + Pc + 2Pw where Q p S is the quantity of Pespi supplied, in millions of litres, Pp is the price of Pespi per litre, Pc is the price of Coek per litre; and Pw is the price of the water used to make the products per litre. (c) What will happen to the supply of Pespi if the price of Coek increases to $6 per litre? Graph the new inverse supply carefully and indicate the new choke price. (d) Suppose instead that the price of Coek remains $4, but the price of water decreases to $1. What will happen to the supply of Pespi as a result?
what bring about an increase in the number of a new product in the Nigeria market
"A widening demand-supply gap is raising coffee bean prices as Asians are drinking more coffee, while Brazil and Vietnam could cut coffee production in 2020" taking the above statement into consideration, utilise demand and supply analysis to illustrate and support the increase in coffee bean price
Assume that Grainland currently produces wheat and does not trade wheat in international markets. (a) Draw a correctly labeled demand and supply graph for the domestic wheat market in Grainland. Label the equilibrium price, PePe, and the equilibrium quantity, QeQe. (b) Suppose the price of wheat in the world market is lower than the domestic price of wheat in Grainland. Assume now Grainland wants to trade wheat in the world market. (i) On your graph from part (a), label the world market price of wheat as PWPW, and identify the domestic quantity demanded of wheat at PWPW, as Q3Q3, and the domestic quantity supplied of wheat labeled as Q1Q1. (ii) Will Grainland export or import wheat? Explain. (c) With international trade in wheat, who will benefit in Grainland: domestic producers, domestic consumers, neither or both? Explain. (d) Suppose that the government of Grainland decides to provide a subsidy for wheat farmers to make the country more competitive and sell wheat at the world market…
The demand for corn (measured in billions of bushels) is given by Con = 5 - 2Pom + 4Ppotutoes - 0.25Putter + 0.0003M. The supply of corn is given by O=9+ 5Pun - 2Puet -1.25Pybeans a. If potatoes cost $0.75 per pound, butter costs $8.00 per pound, diesel fuel costs $3.00 per gallon, soybeans cost $16.00 per bushel, and average income, M, is $40,000 per year, what is the equilibrium price of corn as determined by the demand and supply functions? Instructions: Round your answer to 1 decimal place, b. How much corn is bought and sold (equilibrium quantity? Instructions: Round your answer to 1 decimal place. Obillion bushels. c. If the price of diesel fuel increases to $4.50 per gallon, what is the new equilibrium price? Instructions: Round your answers to 2 decimal places. If the price of diesel fuel increases to $4.50 per gallon, what is the new equilibrium quantity? billion bushels,