Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 4, Problem 2SPPA
To determine
To explain:
Whether the statement that U.S. does not allow oranges from Brazil in the country and that if Brazilian oranges are sold in the market of the U.S., the orange juice will be cheaper is true or false.
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Students have asked these similar questions
The data in the table above represent the market demand and supply for strawberries over a range of prices.
Price(Cents)
Quantity Demand(Million tin/ year)
Quantity supplied(Million tins/year)
10
90
30
20
80
50
30
70
70
40
60
90
50
50
110
4.Define the equilibrium of a market. Find the equilibrium price and quantity.
5.Suppose that an increase in consumers’ income results in an increase of strawberries’ demand.The demand of strawberries rises by 30 million tins/year at each price level. Find the new equilibrium price and quantity.
Suppose the Canadian demand for and the Japanese supply of cars to Canada is shown in the table below (quantities in thousands).
Quantity Supplied
(before tariff)
Quantity supplied
(after tariff)
Price ($)
13,000
14,000
15,000
16,000
17,000
18,000
19,000
20,000
Quantity Demanded
170
150
130
110
90
70
50
30
50
70
90
110
130
150
170
190
a) The present equilibrium price is $
and quantity is
b) Suppose that the Canadian government imposes a $2,000 per car tariff on imported Japanese cars. Show the new supply in the last
column above.
thousand.
thousand.
c) The new equilibrium price is $
and quantity is
d) The total revenue received by the government will be $
e) Assume, instead, that the government imposes an import quota of 90,000 cars. The new equilibrium price is $
quantity is
thousand.
f) Does the government now receive any revenue? No
million.
and
Question # 2
A) The recent statement given in October 2020 by French President undermined the sentiments of the Muslims all around the world. The Muslims of Pakistan decided to record their protest by boycotting French products. A recent survey shows that the shunning of French products has bought about 35 percent decrease in the sales within a month. Suppose, in September 2020, the market for Garnier hair color a French product was at equilibrium with an equilibrium price 1050 and equilibrium quantity of 12,000 in Pakistan. Analyze the impact of a boycott on the demand of Garnier hair color for the month of October 2020 in Pakistan and illustrate it graphically. Also, explain why or why not the demand has changed?
B) Consider a market for Tea a normal good in Karachi. You are supposed to analyze and discuss the effect on the equilibrium output and the price in the Tea market in Karachi for the October, 2020 after the following changes (Other things held constant). In each case,…
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