Homework Help is Here – Start Your Trial Now!
Business
Economics
USB memory sticks have become popular with Canadian computer users because they offer flexibility for users to move data easily from one computing device to another. Figure 1 below shows the domestic Canadian USB memory stick market. Use this information to answer the questions below. Figure 1: Canadian USB Memory Stick Market Price ($) Qp Qs Per Flashdrive Millions of Units 20 6. 18 1 16 2 14 12 4 2 10 5 1 8 6. 7 4 8. 2 9. 10 a) What is the domestic equilibrium price and quantity of USB memory sticks in Canada? Assume the Canadian USB memory stick market is an 'autarky' market (i.e. all USB memory sticks purchased by Canadian consumers are manufactured by Canadian USB memory stick suppliers). What is the total market size (i.e. total revenue or TR)? What is the consumer surplus (CS), producer surplus (PS) and total surplus (TS)? b) The Government of Canada is interested in promoting international trade. The federal government has opened the Canadian market to suppliers of USB memory sticks from the US, Asia and Europe. The international price for USB memory sticks is $10. What is the new equilibrium price and quantity of USB memory sticks with international trade? How many USB memory sticks are imported and how many continue to be provided by domestic producers? What is the total market size (i.e. total revenue or TR)? What is the consumer surplus (CS), producer surplus (PS) and total surplus (TS)? c) Draw the a supply and demand graph for the Canadian USB memory stick market. Make sure to include all the relevant information from parts a) and b).

USB memory sticks have become popular with Canadian computer users because they offer flexibility for users to move data easily from one computing device to another. Figure 1 below shows the domestic Canadian USB memory stick market. Use this information to answer the questions below. Figure 1: Canadian USB Memory Stick Market Price ($) Qp Qs Per Flashdrive Millions of Units 20 6. 18 1 16 2 14 12 4 2 10 5 1 8 6. 7 4 8. 2 9. 10 a) What is the domestic equilibrium price and quantity of USB memory sticks in Canada? Assume the Canadian USB memory stick market is an 'autarky' market (i.e. all USB memory sticks purchased by Canadian consumers are manufactured by Canadian USB memory stick suppliers). What is the total market size (i.e. total revenue or TR)? What is the consumer surplus (CS), producer surplus (PS) and total surplus (TS)? b) The Government of Canada is interested in promoting international trade. The federal government has opened the Canadian market to suppliers of USB memory sticks from the US, Asia and Europe. The international price for USB memory sticks is $10. What is the new equilibrium price and quantity of USB memory sticks with international trade? How many USB memory sticks are imported and how many continue to be provided by domestic producers? What is the total market size (i.e. total revenue or TR)? What is the consumer surplus (CS), producer surplus (PS) and total surplus (TS)? c) Draw the a supply and demand graph for the Canadian USB memory stick market. Make sure to include all the relevant information from parts a) and b).

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question
USB memory sticks have become popular with Canadian computer users because they offer flexibility for users to move data easily from one computing device to another. Figure 1 below shows the domestic Canadian USB memory stick market. Use this information to answer the questions below. Figure 1: Canadian USB Memory Stick Market Price ($) QD Qs Per Flashdrive Millions of Units 20 6. 18 1 16 2 4 14 3 3 12 10 1 8 6. 7 4 8. 2 10 a) What is the domestic equilibrium price and quantity of USB memory sticks in Canada? Assume the Canadian USB memory stick market is an 'autarky' market (i.e. all USB memory sticks purchased by Canadian consumers are manufactured by Canadian USB memory stick suppliers). What is the total market size (i.e. total revenue or TR)? What is the consumer surplus (CS), producer surplus (PS) and total surplus (TS)? b) The Government of Canada is interested in promoting international trade. The federal government has opened the Canadian market to suppliers of USB memory sticks from the US, Asia and Europe. The international price for USB memory sticks is $10. What is the new equilibrium price and quantity of USB memory sticks with international trade? How many USB memory sticks are imported and how many continue to be provided by domestic producers? What is the total market size (i.e. total revenue or TR)? What is the consumer surplus (CS), producer surplus (PS) and total surplus (TS)? c) Draw the a supply and demand graph for the Canadian USB memory stick market. Make sure to include all the relevant information from parts a) and b).
Transcribed Image Text:USB memory sticks have become popular with Canadian computer users because they offer flexibility for users to move data easily from one computing device to another. Figure 1 below shows the domestic Canadian USB memory stick market. Use this information to answer the questions below. Figure 1: Canadian USB Memory Stick Market Price ($) QD Qs Per Flashdrive Millions of Units 20 6. 18 1 16 2 4 14 3 3 12 10 1 8 6. 7 4 8. 2 10 a) What is the domestic equilibrium price and quantity of USB memory sticks in Canada? Assume the Canadian USB memory stick market is an 'autarky' market (i.e. all USB memory sticks purchased by Canadian consumers are manufactured by Canadian USB memory stick suppliers). What is the total market size (i.e. total revenue or TR)? What is the consumer surplus (CS), producer surplus (PS) and total surplus (TS)? b) The Government of Canada is interested in promoting international trade. The federal government has opened the Canadian market to suppliers of USB memory sticks from the US, Asia and Europe. The international price for USB memory sticks is $10. What is the new equilibrium price and quantity of USB memory sticks with international trade? How many USB memory sticks are imported and how many continue to be provided by domestic producers? What is the total market size (i.e. total revenue or TR)? What is the consumer surplus (CS), producer surplus (PS) and total surplus (TS)? c) Draw the a supply and demand graph for the Canadian USB memory stick market. Make sure to include all the relevant information from parts a) and b).
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 7 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Efficiency
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS