Draw and refer to graphs of supply and demand curves

Reference no: EM131426429

Consider a two-country world. Each country has an upward-sloping national supply curve for raisins and a downward-sloping national demand curve for raisins. With no trade in raisins, the no-trade equilibrium price for raisins in one country would be $2.00 per kilogram and the no-trade equilibrium price for raisins in the other country would be $3.20 per kilogram. If the countries allow free trade in raisins, explain why $3.50 per kilogram cannot be the free-trade equilibrium world price for raisins. In your answer, draw and refer to graphs of supply and demand curves for the two national markets.

Reference no: EM131426429

Questions Cloud

What is the probability that at least four will be closed : What is the probability that none of the six air traffic control towers will be closed?- What is the probability that at most two of the air traffic control towers will be closed?

How often would the cycle turn over in a year : Estimate the average length of the firm's short-term operating cycle. How often would the cycle turn over in a year?

Why would god allow bad things to happen : Following a disaster, spirituality is greatly affected by the nature, scope, and complexity of the disaster. The individual could react in different ways depending on the type and severity of the disaster. For example, If the disaster was manmade,..

Probability of a warning being issued at the packaging plant : If there are more than five missing pieces, the producer identifies the packager and issues a warning. What is the probability of a warning being issued at the packaging plant?

Draw and refer to graphs of supply and demand curves : explain why $3.50 per kilogram cannot be the free-trade equilibrium world price for raisins. In your answer, draw and refer to graphs of supply and demand curves for the two national markets.

What is the probability that the fifth satellite launched : Thales Alenia Space is preparing an advertising campaign in which they claim to have had 20 successful launches in a row. What is the probability that the first failure due to a solar-panel problem will occur after the 20th launch?

What is the weighted average cost of capital for ampex : What is the weighted average cost of capital for Ampex?

Find variance and standard deviation of the overdraft amount : Find the mean, variance, and standard deviation of the overdraft amount.- Find the probability that a randomly selected bank has an overdraft fee greater than $25.

Union membership as a percentage of employment : As noted in the lecture notes and in Chapter 14, union membership as a percentage of employment has steadily decreased since the 1950s.

User Account

All Pages