User Account

All Pages

Drop in export demand

Assignment Help Macroeconomics
Reference no: EM131095078

Much of the demand for U.S. agricultural output has come from other countries. In 1998, the total demand for wheat was Q = 3244 - 283 P. Of this, total domestic demand was QD = 1700 - 107 P, and domestic supply was QS = 1944 + 207 P. Suppose the export demand (the difference between total demand and domestic demand) falls by 40 percent.

a) U.S. farmers are concerned about this drop in export demand. What happens to the free-market price of wheat in the U.S.? Do farmers have much reason to worry?

b) Now suppose the U.S. government wants to buy enough wheat to raise the price to $3.50 per bushel. With the drop in export demand, how much wheat would the government have to buy? What would be the cost to government?

Reference no: EM131095078

Questions Cloud

The bill has arrived for the marketing materials : Kyle, Brian and Pam are all partners in a general partnership that is engaged in the business of event planning. Kyle contributed 45% of the capital, Brian contributed 40% of the capital, and Pam contributed 15% of the capital of the partnership. Wit..
Who is in charge of specific functions and tasks : What are the most significant differences that you found between developing a natural hazard emergency management plan and developing a man-made hazard emergency management plan? Explain.
Wind tunnel experiment : Wind tunnel experiment on naca4415  1. INTRODUCTION OBJECTIVES THE NACA 4415 AIRFOIL
Do the gains out weight the losses : Economically who benefits when retailers in Europe and the United States source textiles from low-wage countries such as Bangladesh? Who might lose? Do the gains out weight the losses?
Drop in export demand : Now suppose the U.S. government wants to buy enough wheat to raise the price to $3.50 per bushel. With the drop in export demand, how much wheat would the government have to buy? What would be the cost to government?
What are the values for r-intercept and the Y intercept : If C = 1000 + 0.75 x Disposable Income while investment is I = 2000 – 20r. If government expenditures are 0, the tax rate is 1/3, what is the equation of the IS curve? What are the values for r-intercept and the Y intercept?
Evaluate organization and making recommendations : Your team is a group of consultants chartered with evaluating an organization and making recommendations for maintaining and improving effectiveness. Your team must present a summary of your findings to the management of the organization. Select a..
Large corporation offers steak sandwiches : A cafe catering for staff in a large corporation offers steak sandwiches and hamburgers as part of its menu. Recently corporation staff were awarded a 7.5% wage rise. Since then the cafe manager has noticed that average daily sales of steak sandwiche..
Explain your thought process in distinguishing the examples : How would you differentiate an invention from an innovation as it applies to science and technology? Provide two examples of each type and explain your thought process in distinguishing the examples provided.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd