5. (Topic 5) The market for onions a) **Let's assume the domestic demand and supply functions for onions in Australia was given by: QD-165-25P Qs-50P-30 b) Sketch a basic diagram of the Australian market for onions, with calculated domestic equilibrium price and quantity, and label axis intercepts. c) **Australia is a net exporter of onions in the international market. Assuming the world price of onions is currently $3.00 per kg, calculate the quantity of onions produced and consumed domestically, and amount of onions exported, and the value of export sales. d) * Refer to your diagram, and comment on what would happen in the domestic market for onions if we suddenly lost our access to international trade in this market. How does trade affect the welfare of producers and consumers, and the domestic economy overall? Is there a deadweight loss implied by allowing trade? Or not allowing trade? Substantiate

5. (Topic 5) The market for onions a) Let's assume the domestic demand and supply functions for onions in Australia was given by: QD-165-25P Qs-50P-30 b) Sketch a basic diagram of the Australian market for onions, with calculated domestic equilibrium price and quantity, and label axis intercepts. c) Australia is a net exporter of onions in the international market. Assuming the world price of onions is currently $3.00 per kg, calculate the quantity of onions produced and consumed domestically, and amount of onions exported, and the value of export sales. d) * Refer to your diagram, and comment on what would happen in the domestic market for onions if we suddenly lost our access to international trade in this market. How does trade affect the welfare of producers and consumers, and the domestic economy overall? Is there a deadweight loss implied by allowing trade? Or not allowing trade? Substantiate

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 10PA

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