ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- Two countries trade with each other. The one country (Petro), has a comparative advantage i the production of oil; the other (Sucre) in the production of sugar. Both countries are big on world market for these goods. The world market price of oil is 90 dollars per unit (per barrel): for sugar it is 2 dollars per kg. Evaluate the following statements (each statement separately), they are true or false? In subtasks 3b and 3c, you must illustrate what happens on the world market (in task 3a, you must not use any figure). 3a With the given relative prices, Sucre's exchange ratio is 90/2, ie 45 kg of sugar per barrel of oil. 3 3b trade ratio to deteriorate. (Figure required) If Sucre discovers large oil deposits that it can exploit, its time will come 3c If a large percentage of the world's population reduces their sugar consumption due to its harmful health effects improve Petro's metabolic rate. (Figure required)arrow_forwardN1arrow_forward1. The marginal price ?? ?? at ? units of demand per week is proportional to the price p. There is no weekly demand at a price of $1000 per unit, that is ?(0) = 1000. There is a weekly demand of 10 units at price of $367.88 per unit, ?(10) = 367.88. (A) Find the price-demand equation. (B) At a demand of 20 units per week, what is the price? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forward
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