How many containers of roses a year would be bought

Reference no: EM13201273

Wholesalers of roses (the firms that supply your local flower shop with roses for Valentine's Day) buy and sell roses in containers that hold 120 stems. The table provides information about the wholesale market for roses in the United States. The demand schedule is the wholesaler's demand and the supply schedule is the U.S. rose growers' supply

Price Quantity Demanded Quantity Supplied
(Dollars per container) (Millions of Containers per Year)
100 15 0
125 12 2
150 9 4
175 6 6
200 3 8
225 0 10

Wholesalers can buy roses at auction in Aalsmeer, Holland, for $125 per container.

a. Without international trade, what would be the price of a container of roses and how many containers of roses a year would be bought and sold in the United States?

b. At the price in your answer to a, does the United States or the rest of the world have a comparative advantage in producing roses?

c. If U.S. wholesalers buy roses at the lowest possible price, how many do they buy from U.S. growers and how many do they import?

d. Draw a graph to illustrate the U.S. wholesale market for roses. Show on the graph the equilibrium in that market with no international trade and the equilibrium with free trade. Mark on the graph the quantity of roses produced in the United States, the Quantity imported, and the total quantity bought.

Reference no: EM13201273

Questions Cloud

Determine size of economys recessionary expenditure gap : The St. Louis Federal Reserve bank at www.research.stlouisfed.org/fred2 provides data on both real GDP (chained 2000 dollars) and real potential GDP for the United States. To get the data, first click on Gross Domestic Product (GDP) and Components..

Are retailers reporting that recent sales met expectations : Go to the Federal Reserve Web site, www.federalreserve.gov, and select About the Fed, then The Federal Reserve System, and then Districts and Banks. Find your Federal Reserve District. Next, return to the Fed home page and select Monetary Policy.

Compute linear programming problem : If maximizing profit and producing beer mugs and champaign glasses. with profit of R25.00 for beer mugs while for champaign glasses is R20. The cups are manufactured with a machine which feeds on plastic resins.

How to use ad-as analysis to show two impacts on real gdp : In early 2001 investment spending sharply declined in the United States. In the 2 months following the September 11, 2001, attacks on the United States, consumption also declined. Use AD-AS analysis to show the two impacts on real GDP.

How many containers of roses a year would be bought : illustrate the U.S. wholesale market for roses. Show on the graph the equilibrium in that market with no international trade and the equilibrium with free trade. Mark on the graph the quantity of roses produced in the United States

Determine whose production creates detrimental externalities : Give and discuss (1) some examples of goods whose production creates detrimental externalities, (2)some examples of goods whose production creates beneficial externalities, and (3) some examples of the free rider problem.

What do you mean by properly functioning free market : The City Symphony presents three open-air concerts in the city park pavilion during the spring and summer. Many who attend make donations for symphony expenses, but the donation is not required. Some who attend make no contributions.

State what is the chance that both circuits : What is the chance that both circuits she selects will be defective? Show step by step work! Approximate the solution to the nearest ten thousandth.

State proposition hold without absolute converge : Show that if sum a_n converges absolutely then sum a^2_n also converges absolutely Does this proposition hold without absolute converge

User Account

All Pages