Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 4, Problem 2SPPA
To determine
To explain:
Whether the statement that U.S. does not allow oranges from Brazil in the country and that if Brazilian oranges are sold in the market of the U.S., the orange juice will be cheaper is true or false.
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Students have asked these similar questions
The data in the table above represent the market demand and supply for strawberries over a range of prices.
Price(Cents)
Quantity Demand(Million tin/ year)
Quantity supplied(Million tins/year)
10
90
30
20
80
50
30
70
70
40
60
90
50
50
110
4.Define the equilibrium of a market. Find the equilibrium price and quantity.
5.Suppose that an increase in consumers’ income results in an increase of strawberries’ demand.The demand of strawberries rises by 30 million tins/year at each price level. Find the new equilibrium price and quantity.
Suppose the Canadian demand for and the Japanese supply of cars to Canada is shown in the table below (quantities in thousands).
Quantity Supplied
(before tariff)
Quantity supplied
(after tariff)
Price ($)
13,000
14,000
15,000
16,000
17,000
18,000
19,000
20,000
Quantity Demanded
170
150
130
110
90
70
50
30
50
70
90
110
130
150
170
190
a) The present equilibrium price is $
and quantity is
b) Suppose that the Canadian government imposes a $2,000 per car tariff on imported Japanese cars. Show the new supply in the last
column above.
thousand.
thousand.
c) The new equilibrium price is $
and quantity is
d) The total revenue received by the government will be $
e) Assume, instead, that the government imposes an import quota of 90,000 cars. The new equilibrium price is $
quantity is
thousand.
f) Does the government now receive any revenue? No
million.
and
Determine how the following affects the market for apples in the United States. While not required, you may wish to draw the supply and demand diagram for apples to assist in determining the impact on quantity and price.
A new study shows significant health benefits from eating apples.
Select one:
a.Quantity increases and price increases
b.Quantity increases and price decreases
c.Quantity decreases and price increases
d.Quantity decreases and price decreases
Trade barriers restricting apples imports from Canada are eliminated.
Select one:
a.Quantity increases and price increases
b.Quantity increases and price decreases
c.Quantity decreases and price increases
d.Quantity decreases and price decreases
Genetically modified apples trees that allow for much greater output per tree without greater costs are introduced into the market.
Select one:
a.Quantity increases and price increases
b.Quantity increases and price decreases
c.Quantity decreases and price increases
d.Quantity…
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