**Russia and France Chocolate Trade Analysis**Russia trades chocolate with France, where chocolate is considered a staple. The Russian government has implemented a price floor for chocolate (a level above the equilibrium price). As a result, a surplus is created, with the government purchasing 4 excess units from producers. This surplus is then sold in France. Use the graph provided to analyze the market implications when Russia sells this excess chocolate on the world market (specifically to France).### Market Analysis**Question:**What price should the Russian government charge to sell four units of chocolate in France? Provide your answer rounded to the nearest whole number.**Graph Explanation:**The graph titled "Market for chocolate in France" illustrates the supply and demand curves for chocolate, measured by price and quantity (in units).- **Price Axis (vertical):** Ranges from $0 to $10.- **Quantity Axis (horizontal):** Ranges from 0 to 10 units.**Supply Curve (Red):**- Begins at $2 for 2 units and rises linearly to $10 for 10 units.**Demand Curve (Blue):**- Starts at $10 for 0 units and decreases linearly to $2 for 8 units.**Equilibrium Point:**- The intersection of the supply and demand curves occurs at $6 for 6 units of chocolate.**Government Intervention:**- Given the surplus of 4 units, the Russian government should evaluate the demand curve to determine an optimal price point for selling these units in France.Please enter the price in the provided box: $ ___The goal is to match these 4 units with demand in the French market, ensuring competitive pricing that maximizes revenue while addressing market conditions.

Price floor is the price set by the government which is the minimum price that should be charged…

Russia trades chocolate with France, where it is a staple. The government of Russia places a price floor on their market for chocolate (assume that it is binding). They buy the surplus of 4 units from the producers and sell it in France. Refer to the graph to determine what happens when the government then sells the excess on the world market (to France). What should the government of Russia charge in order to sell four units of chocolate in France? Round your answer to the nearest whole number. $ Price $10 9 8 7 6 5 4 3 2 1 Market for chocolate in France 0 1 2 3 4 5 6 7 Supply Demand 8 9 Quantity 10

Russia trades chocolate with France, where it is a staple. The government of Russia places a price floor on their market for chocolate (assume that it is binding). They buy the surplus of 4 units from the producers and sell it in France. Refer to the graph to determine what happens when the government then sells the excess on the world market (to France). What should the government of Russia charge in order to sell four units of chocolate in France? Round your answer to the nearest whole number. $ Price $10 9 8 7 6 5 4 3 2 1 Market for chocolate in France 0 1 2 3 4 5 6 7 Supply Demand 8 9 Quantity 10

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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