Microeconomics (7th Edition)
7th Edition
ISBN: 9780134737508
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 3, Problem 3.2.9PA
To determine
The oil supply.
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Suppose that a consumer in Germany buys a Ford Mustang for a price of $30,000. Do U.S. exports increase by $30,000? Briefly explain.
Below is my question, also any tips on making it an excel graph?
The major BP oil spill in the Gulf of Mexico substantially reduced the harvest of shrimp and other seafood in the Gulf, but had limited impact on the prices that U.S. consumers paid in 2010 (Emmeline Zhao, “Impact on Seafood Prices Is Limited,", Wall Street Journal, June 20, 2010). The reason was that the United States imports about 83% of its seafood and only 2% of domestic supplies come from the Gulf.
Use a supply-and-demand diagram to illustrate what happened.
Suppose that Kenji and Lucia are the only suppliers of shoes in a particular market. The following table shows their annual supply schedules:
#
Price
Kenji's Quantity Supplied Lucia's Quantity Supplied
(Dollars per pair)
(Pairs)
0
(Pairs)
16
10
20
16
32
30
24
44
40
28
52
50
32
56
On the following graph, plot Kenji's supply of shoes using the green points (triangle symbol). Next, plot Lucia's supply of shoes using the purple points
(diamond symbol). Finally, plot the market supply of shoes using the orange points (square symbol).
Note: Line segments will automatically connect the points. Remember to plot from left to right.
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Chapter 3 Solutions
Microeconomics (7th Edition)
Ch. 3 - Prob. 1TCCh. 3 - Prob. 2TCCh. 3 - Prob. 3.1.1RQCh. 3 - Prob. 3.1.2RQCh. 3 - Prob. 3.1.3RQCh. 3 - Prob. 3.1.4RQCh. 3 - Prob. 3.1.5RQCh. 3 - Prob. 3.1.6PACh. 3 - Prob. 3.1.7PACh. 3 - Prob. 3.1.8PA
Ch. 3 - Prob. 3.1.9PACh. 3 - Prob. 3.1.10PACh. 3 - Prob. 3.1.11PACh. 3 - Prob. 3.1.12PACh. 3 - Prob. 3.1.13PACh. 3 - Prob. 3.1.14PACh. 3 - Prob. 3.1.15PACh. 3 - Prob. 3.1.16PACh. 3 - Prob. 3.1.17PACh. 3 - Prob. 3.2.1RQCh. 3 - Prob. 3.2.2RQCh. 3 - Prob. 3.2.3RQCh. 3 - Prob. 3.2.4PACh. 3 - Prob. 3.2.5PACh. 3 - Prob. 3.2.6PACh. 3 - Prob. 3.2.7PACh. 3 - Prob. 3.2.8PACh. 3 - Prob. 3.2.9PACh. 3 - Prob. 3.3.1RQCh. 3 - Prob. 3.3.2RQCh. 3 - Prob. 3.3.3RQCh. 3 - Prob. 3.3.4PACh. 3 - Prob. 3.3.5PACh. 3 - Prob. 3.3.6PACh. 3 - Prob. 3.3.7PACh. 3 - Prob. 3.3.8PACh. 3 - Prob. 3.3.9PACh. 3 - Prob. 3.4.1RQCh. 3 - Prob. 3.4.2RQCh. 3 - Prob. 3.4.3PACh. 3 - Prob. 3.4.4PACh. 3 - Prob. 3.4.5PACh. 3 - Prob. 3.4.6PACh. 3 - Prob. 3.4.7PACh. 3 - Prob. 3.4.8PACh. 3 - Prob. 3.4.9PACh. 3 - Prob. 3.4.10PACh. 3 - Prob. 3.4.11PACh. 3 - Prob. 3.4.12PACh. 3 - Prob. 3.4.13PACh. 3 - Prob. 3.4.14PACh. 3 - The following four graphs represent four market...Ch. 3 - Prob. 3.4.16PACh. 3 - Prob. 3.4.17PACh. 3 - Prob. 3.4.18PACh. 3 - Prob. 3.3CTE
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Similar questions
- Suppose that Carlos and Deborah are the only suppliers of pieces of cake in some hypothetical market. Their annual supply schedules are given by the following table: Carlos's Quantity Supplied Deborah's Quantity Supplied (Pieces) ITT 20 30 35 40 PRICE (Dollars per piece) (Dollars per piece) 5 Price 0 0 1 2 3 4 5 20 On the following graph, plot Carlos's supply of pieces of cake using the green points (triangle symbol). Next, plot Deborah's supply of pieces of cake using the purple points (diamond symbol). Finally, plot the market supply of pieces of cake using the orange points (square symbol). Note: Line segments will automatically connect the points. Remember to plot from left to right. (?) 40 60 80 QUANTITY (Pieces) 100 (Pieces) 120 20 40 55 65 70 Carlos's Supply Deborah's Supply O Market Supplyarrow_forwardAccording to a 2018 article in the Wall Street Journal, proposed tariffs on imported steel could cause the price to consumers of new cars to increase by as much as $300. Use a graph to illustrate the impact of this on the current demand curve for new cars in the United States.arrow_forwardIllustrate and explain how the market for milk in the US economy will maintain equilibrium over time given the problem that will exist with current demand conditionsarrow_forward
- The graph below shows domestic supply and demand for coffee in the U.S. Suppose that at any price, foreign suppliers of coffee will supply 50, 000 pounds. The "Domestic Supply + Imports" curve is misplaced. Re-position the curve to reflect the provided information. (Note that quantity is expressed in thousands of pounds on the graph.) Provide your answer below: 150 Demand -100- Domestic Supply (40,$50) Domestic Suppty+imports (50,$50 50 50 100 150arrow_forwardWhen graphing a market, one of the key aspects to remember is that equilibrium occurs where supply equals demand. Therefore, you can find the equilibrium price and quantity by setting the supply and demand equations equal to one another. In this case, since domestic demand is P = 11.5 - Q and domestic supply is P = 5.5 + Q, you can find the equilibrium quantity as 11.5 – Q = 5.5 + Q. Solving for Q, you get 2Q = 6 or Q = 3 (which in this case equates then to 300 million bushels). Plugging that answer back into either the supply or demand equation, you find the equilibrium price (which is 8.5 or 85 yuan) or Rent in this case). This is the equilibrium point with no trade.With the application of the world price and then the world price plus tariff, you just need to plug the established prices (6.5 for world price, 6.5 + 1.5 for the tariff) into the supply and demand equations to find the quantity supplied and the quantity demanded with or without the tariff. Recently, China placed tariffs…arrow_forwardConsider the market for gasoline that is initially in equilibrium. Suppose that the Middle East, a major supplier of petroleum used to produce gasoline, erupts into war. At the same time suppose that the price of electric vehicles falls. Given these changes and holding everything else constant, what happens to the equilibrium price and quantity in the market for gasoline relative to the initial equilibrium price and quantity in the market a. The equilibrium price may increase, decrease or remain the same while the equilibrium quantity will decrease b. The equilibrium price may increase, decrease or remain the same while the equilibrium quantity willincrease c. The equilibrium price will increase while the equilibrium quantity may increase, decrease or remain the same d. The equilibrium price will decrease while the equilibrium quantity may increase, decrease or remain the samarrow_forward
- The following is an excerpt from an article in the Singaporean newspaper, the Straits Times: Singaporeans with a sweet tooth could soon find themselves paying more for their favourite treats, as bakers and confectioners buckle under soaring sugar prices. Since March last year, the price of white sugar has shot up by 70 per cent, according to the New York Board of Trade. As if that didn’t make life difficult enough for bakers, butter and cheese prices have also risen, by 31 per cent and 17 per cent respectively. The increases have been caused by various factors: a steep drop in Thailand’s sugarcane production due to drought, higher sea freight charges, increasing demand from China’s consumers for dairy products and the strong Australian and New Zealand dollar. For the consumer in Singapore, what this may eventually boil down to is a more expensive bag of cookies, with prices at some bakeries expected to rise between 10 and 20 per cent. [The owner of a Singapore…arrow_forwardIBM sold its personal computer (PC) and laptop business to Leonova (a Chinese company). HP and Compaq merged into one company. Dell is having trouble keeping its sales volume growing. These are indications that the supply of PCs produced by US companies should eventually ______________. >>>Is it decrease? Due to more Chinese computers?arrow_forwardUsing supply-and-demand diagrams explain how the following events would affect the supply or demand in each market (draw the original demand and supply and in the same graph draw the NEW demand or supply-showing your shifts) and how the quantity and price of in equilibrium will be affected: a) An ongoing, chronic shortage of long-haul drivers is creating major issues with trucking capacity, leading to delays when transporting goods across countries. Also, because building materials like steel beams, concrete slabs, pipes, logs, etc. are large and very heavy, it’s common for companies to use oversized flatbed fleet trucks or tractor trailer fleet trucks to ship them around the country. What happens in the market of building materials due to this event? b) What happens in the market for ramen noodle soup if: there is a world-wide recession that decreases consumers' incomes (assume ramen noodle soup is an inferior good)?arrow_forward
- Using supply-and-demand diagrams explain how the following events would affect the supply or demand in each market (draw the original demand and supply and in the same graph draw the NEW demand or supply-showing your shifts) and how the quantity and price of in equilibrium will be affected: a) An ongoing, chronic shortage of long-haul drivers is creating major issues with trucking capacity, leading to delays when transporting goods across countries. Also, because building materials like steel beams, concrete slabs, pipes, logs, etc. are large and very heavy, it’s common for companies to use oversized flatbed fleet trucks or tractor trailer fleet trucks to ship them around the country. What happens in the market of building materials due to this event? b) What happens in the market for store brand sodas if: there is a world-wide recession that decreases consumers' incomes (assume ramen noodles are an inferior good)?arrow_forwardThe market for text books is currently in equilibrium. The following are some changes that may take place in the market for textbooks. For each of the following, indicate what will happen to either the demand for or the supply of textbooks by listing which curve is affected and then the terms: "shift right or "shift left" and show it graphically. (NOTE: START FROM THE INITIAL EQUILIBRIUM) otes = NOTES COMMENTS Ps Lrc 65 Chparrow_forwardIn November 2019, as a result of the African swine fever crisis, one half of the pigs in China became sick and needed to be destroyed. Using supply and demand analysis graph and explain what effect the African swine fever crisis will have on the market for pork in China and on the market for beef in China. https://www.marketwatch.com/story/chinas-pork-crisis-is-bigger-than-you-think-2019-11-11 the link above is where the information isarrow_forward
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