Explain why the following might be true: A drought in the Caribbean raises the total revenue that producers receive from the sale of coffee, but a drought only in Grenada reduces the total revenue that Grenadian producers receive. Ensure that you define any key terms used in your discussion.
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Explain why the following might be true: A drought in the Caribbean raises the total revenue that producers receive from the sale of coffee, but a drought only in Grenada reduces the total revenue that Grenadian producers receive.
Ensure that you define any key terms used in your discussion.
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- Consider this scenario. A major hurricane is about to hit the Orlando, Florida area. Discuss what effects this weather event will have on various Florida markets, such as building materials, batteries, water, hotel rooms, local produce sales, entertainment industry ticket sales (Disney, Universal, etc.), real estate prices, fast food, and caviar. Think of some other products that would be affected.Please answer part (D). 1. Much of the demand for U.S. agricultural output comes from other countries. Suppose that the total demand for wheat in the U.S. wheat market is QDT = 3,244 – 283P, where P is the price measured in dollars per bushel and Q is the quantity of wheat expressed in millions of bushels per year. Of the total demand, total domestic demand was QD,US = 1,700 – 107P. Total supply of wheat in the U.S. market is QST = 1,944 + 207P. As a result of the ongoing trade war with China, suppose the export demand for wheat falls by 40 percent. a. U.S. farmers are concerned about this drop in export demand. How does this drop in export demand impact the market price of wheat in the U.S.? Do farmers have much reason to worry? Explain/support your answer. b. How does the reduction in export demand affect U.S. consumer surplus in the wheat market? Illustrate and explain. c. Now, suppose the U.S. government wants to buy enough wheat to raise the price to $3.50 per bushel. With…Consider this scenario. A major hurricane is about to hit the Orlando, Florida area. Discuss what effects this weather event will have on various Florida markets, such as building materials, batteries, water, hotel rooms, local produce sales, entertainment industry ticket sales (Disney, Universal, etc.), real estate prices, fast food, and caviar.
- The table shows the demand and supply for cocoa beans in two countries: Cameroon and Nigeria. Use the information in the table to answer the questions. Price ($) per pound (lb) of cocoa beans Price ($/lb) Cameroon quantity demanded (lb) Cameroon quantity supplied (lb) Nigeria quantity demanded (lb) Nigeria quantity supplied (lb) 8 180 500 155 210 7 200 460 180 180 6 250 410 200 160 5 280 360 220 140 4 320 320 240 125 3 350 280 260 115 What would be the equilibrium price and quantity in Cameroon and Nigeria if free trade existed between the two countries?Scenario 1: As part of an international trade agreement, the Oman government reduces the tax on imported coffee. Will this affect the supply or the demand for coffee? Why? Which determinant of demand or supply is being affected? Explain. Show graphically the effect of changes in demand or supply. How will this change the equilibrium price and quantity of coffee? Explain your reasoning.PART B: Explain why the following might be true: A drought in the Caribbean raises the total revenue that producers receive from the sale of coffee, but a drought only in Grenada reduces the total revenue that Grenadian producers receive.
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- Mobile phones and mobile phone technology have generated significant advances in communication. You love your new job for Mobile Mint Inc., a rising player in the mobile phone industry. In a recent report on CNBC, industry analysts have reported falling prices in mobile phones along with an increased amount available in production. Using a supply and demand framework for mobile phones, which of the following statement best describes which events could have caused these changes? You will present this analysis to the board of directors at the next quarterly meeting. Student hint: this material is covered in Chapter 8 of Froeb et al. is time with a a) shock from a disruption to transit routes for microchips, an input to mobile phones Ob) chargers b. a stationary supply curve and an increase in the price of mobile phone Oc) c. an industry-wide innovation in the production process to make mobile phones d) d. a stationary demand curve and a shifting right supply curve over time O e) e. c and…Recently, China placed tariffs on the importation of US soybeans. Assume that the domestic market for soybeans in China is described by the following equations: Demand: P = 11.5 – Q Supply: P = 5.5 + Q Price is in 10 Yuan (¥) per bushel of soybeans and the units for Quantity are 100 million bushels per year. This is to make graphing simpler. This does NOT mean that the price is 10 and quantity is 100. Rather it means that if the price was 40¥ and the quantity was 7,500,000,000 bushels, this would plot as 4 and 7.5 respectively. The world price for soybeans is ¥65/bushel (this would graph as 6.5). Graph the soybean market in China showing equilibrium both with no barriers to trade and with a ¥15/bushel tariff. Be sure to fully and clearly label the graph including: Domestic Demand curve (D), Domestic Supply curve (S), the World Price (WP), and the Price with tariffs (PT). Based on your graph for question 3, what amount of soybeans will China import from the US if there are no…Recently, China placed tariffs on the importation of US soybeans. Assume that the domestic market for soybeans in China is described by the following equations: Demand: P = 11.5 – Q Supply: P = 5.5 + Q Price is in 10 Yuan (¥) per bushel of soybeans and the units for Quantity are 100 million bushels per year. This is to make graphing simpler. This does NOT mean that the price is 10 and quantity is 100. Rather it means that if the price was 40¥ and the quantity was 7,500,000,000 bushels, this would plot as 4 and 7.5 respectively. The world price for soybeans is ¥65/bushel (this would graph as 6.5). Graph the soybean market in China showing equilibrium both with no barriers to trade and with a ¥15/bushel tariff. Be sure to fully and clearly label the graph including: Domestic Demand curve (D), Domestic Supply curve (S), the World Price (WP), and the Price with tariffs (PT).