Microeconomics (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134184241
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Chapter 1, Problem 5RQ
To determine
Exchange rate between US dollar and Japanese yen.
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The demand for Australian-made motorcycles in Japan is given by: Japanese demand = 10000 –0.001(price of Australian motorcycles in yen).
Similarly, the demand for Japanese-made motorcycles in Australia is: Australian demand = 30 000 –0.2(price of Japanese motorcycles in dollars).
The domestic price of an Australian-made motorcycle is $20 000, and the domestic price of a Japanese-made motorcycle is ¥2 500 000. From the perspective of Australia, find the real exchange rate in terms of motorcycles and net exports of motorcycles to Japan,
if:
a) the nominal exchange rate is 100 yen per dollar
b) the nominal exchange rate is 125 yen per dollar.
c) How does an appreciation of the dollar affect Australian net exports of motorcycles (considering only the Japanese market)?
Consider the economy of Russia, which produces oil and cars that are sold both domestically and internationally. Suppose an increase in foreign income causes an increase in the world demand for oil, whereas the supply does not change.
The following graph shows the market for oil in Russia.
Adjust the following graph to show the effect of a higher demand for oil on the economy of Russia.
Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther.
Beer production in Mexico rose 4.7 percent in 2021, registering 118.7 million hectoliters more. Although the installed capacity of the brewing industry allowed for its gradual recovery, particularly towards the second half, this increase is explained by the fact that, by the end of 2021, a greater number of massive events were held that allowed the demand for beer to increase. The increase in beer production in Mexico is explained by a shift in the demand curve to the right, this movement causes a decrease in the price of beer, which helped reactivate the market. (T/F) _______
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Microeconomics (9th Edition) (Pearson Series in Economics)
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