3/25/22, 10:55 PM Assignment Print View b. Use the graph above to indicate the world price, the new domestic quantity supplied (Qs), and the new domestic quantity demanded (Qd). Instructions: Use the tool provided "Pworld" to draw a horizontal world price such that the first point touches the vertical axis. Use the tools provided "Qs" and "Qd" to indicate the domestic quantity supplied and domestic quantity demanded. c. At the world price of $60 per barrel, this small country will export million barrels of wine. d. A result of this country opening its wine market to international trade is that: Oboth domestic consumers and domestic producers benefit. Oboth domestic consumers and domestic producers lose. Odomestic consumers benefit while domestic producers lose. Odomestic producers benefit while domestic consumers lose. References Learning Objective: Illustrate the small- country model in a supply and demand diagram. Graphing Difficulty: 2 Medium https://ezto.mheducation.com/hm.tpx?todo=c15SinglePrintView&singleQuestionNo=5.&postSubmissionView=13252717296651441&wid=13252718466068729&rol... 2/2

3/25/22, 10:55 PM Assignment Print View b. Use the graph above to indicate the world price, the new domestic quantity supplied (Qs), and the new domestic quantity demanded (Qd). Instructions: Use the tool provided "Pworld" to draw a horizontal world price such that the first point touches the vertical axis. Use the tools provided "Qs" and "Qd" to indicate the domestic quantity supplied and domestic quantity demanded. c. At the world price of $60 per barrel, this small country will export million barrels of wine. d. A result of this country opening its wine market to international trade is that: Oboth domestic consumers and domestic producers benefit. Oboth domestic consumers and domestic producers lose. Odomestic consumers benefit while domestic producers lose. Odomestic producers benefit while domestic consumers lose. References Learning Objective: Illustrate the small- country model in a supply and demand diagram. Graphing Difficulty: 2 Medium https://ezto.mheducation.com/hm.tpx?todo=c15SinglePrintView&singleQuestionNo=5.&postSubmissionView=13252717296651441&wid=13252718466068729&rol... 2/2

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter33: International Trade

Section: Chapter Questions

Problem 6SCQ: Table 33.15 shows how the average costs of production for semiconductors (the chips In computer...

See similar textbooks

Similar questions

What might account for the dramatic increase in international trade over the past 50 years?
Do consumers benefit from intra-industry trade?
Why does the United States not have an absolute advantage in coffee?
France and Tunisia both have Mediterranean climates that are excellent for producing/harvesting green beans and tomatoes. In France it takes two hours for each worker to harvest green beans and two hours to harvest a tomato. Tunisian workers need only one hour to harvest the tomatoes but four hours to harvest green beans. Assume there are only two workers, one in each country, and each works 40 hours a week. Draw a production possibilities frontier for each country. Hint: Remember the production possibility frontier is the maximum that all workers can produce at a unit of time which, in this problem, is a week. Identify which country has the absolute advantage in green beans and which country has the absolute advantage in tomatoes. Identity which country has the comparative advantage. How much would France have to give up In terms of tomatoes to gain from trade? How much would it have to give up in terms of green beans?
Table 33.15 shows how the average costs of production for semiconductors (the chips In computer memories) change as the quantity of semiconductors built at that factory increases. Based on these data, sketch a curve with quantity produced on the horizontal axis and average cost of production on the vertical axis. How does the curve illustrate economies of scale? If the equilibrium quantity of semiconductors demanded is 90,000, can this economy take full advantage of economies of scale? What about if quantity demanded is 70,000 semiconductors? 50,000 semiconductors? 30,000 semiconductors? Explain how international trade could make it possible for even a small economy to take full advantage of economies of scale, while also benefiting from competition and the variety offered by several producers.
How can there be any economic gains for a country from both importing and exporting the same good, like cars?
Why might a low-income country put up barriers to trade, such as tariffs on imports?
What are the conditions under which a country may use the unsafe products argument to block imports?
Explain how predatory pricing could be a motivation for dumping.
Suppose workers in Canada and the United States can produce either baseball bats or hockey sticks. Output per worker per hour at each activity is the following Bats Sticks Canada 6. United States Suppose the two countries move from autarky to mutually beneficial trade. Everything else held constant, this will.cause the price of a baseball bat to decrease in Select one: OA Canada. OB the United States 828AM /2021 ob
1. Gains from trade Consider two neighboring island countries called Dolorium and Contente. They each have 4 million labor hours available per week that they can use to produce jeans, rye, or a combination of both. The following table shows the amount of jeans or rye that can be produced using 1 hour of labor. Country Dolorium Contente Jeans Rye (Pairs per hour of labor) (Bushels per hour of labor) 20 16 Initially, suppose Contente uses 1 million hours of labor per week to produce jeans and 3 million hours per week to produce rye, while Dolorium uses 3 million hours of labor per week to produce jeans and 1 million hours per week to produce rye. Consequently, Dolorium produces 15 million pairs of jeans and 20 million bushels of rye, and Contente produces 8 million pairs of jeans and 48 million bushels of rye. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of jeans and rye it produces.…
Problem 19-03 (algo) The following hypothetical production possibilities tables are for China and the United States. Assume that before specialization and trade the optimal product mix for China is alternative D and for the United States is alternative S. China Production Possibilities ok Product A B D E F Apparel 80,000 64,000 int Chemicals (tons) 0 32 48,000 64 32,000 96 16,000 128 160 rences Product Apparel Chemicals (tons) U.S. Production Possibilities R 240,000 0 S T 192,000 144,000 48 96 U 96,0000 144 W 48,000 0 192 240 Instructions: Enter your answers as whole numbers. a. Are comparative-cost conditions such that the two countries should specialize? Yes If so what product should each produce?