User Account

All Pages

What is the equation for the new supply curve

Assignment Help Business Economics
Reference no: EM133080634

Consider the following trade situation:The U.S. demand for imports of maple syrup from Canada is QD = 21-P

The supply of maple syrup to the United States from Canada is QS = 7 + P

The units are million boxes and U.S. dollars per boxOne U.S. dollar buys 10 Canadian dollars

Draw a graph showing clearly the quantity of US imports of maple syrup from Canada and their price in US dollars.[Insert an image of your graph here]

There is free trade in maple syrup (no tariffs or quotas on imports from Canada), but the Canadian dollar (CAD) increases in value against the US dollar (USD), so that one USD only buys 5 CAD. The cost of maple syrup for the U.S. consumer is now double what it was in the base case for each quantity imported. In the table below show the quantity of imports supplied at various prices before (from the equation above) and after the change in the currency values..

2. Draw a graph of the problem in U.S. dollars, showing clearly the price that U.S. importers (the buyers) pay and the quantity of trade that will occur.

[Insert an image of your graph here]

What is the equation for the new supply curve?

How has the change in currency values affected the shape of the supply curve?

How has it affected the responsiveness of Canadian maple syrup supply to changes in US prices?

What is the price of maple syrup in CAD before and after the change in the value of the Canadian dollar?

What is the price in US dollars before and after the change?

Reference no: EM133080634

Questions Cloud

Draw a demand curve combining the demand curves : a. Draw a demand curve combining the demand curves of each of the three sets of consumers for all 150 contacts.
Strategic actions and competitiveness : Describe at least two strategic actions the firm has conducted in the past two years. Identify the major strengths and weaknesses of each competitor.
Prepare Colson journal entries for the January issuance : The Colson Company issued $400,000 of 10% bonds at 96 on January 1, 2020. Prepare Colson journal entries for the January issuance
Importance of a well-developed compensation plan : How does the importance of a well-developed compensation plan work in attracting and retaining good employees and how to keep those plans from "working too well
What is the equation for the new supply curve : Consider the following trade situation:The U.S. demand for imports of maple syrup from Canada is QD = 21-P
How much she must invest at the end of each year : Holly wants to have $200,000 to send a recently born child to college. She sets up a 529 plan and wants to know how much she must invest
Comment on the equivalence of the two approaches : Consider a model with only one time period. Assume that there exist a stock and a cash bond in the model. The initial price of the stock is $40. The investor be
Federal and state budget submission process : Distinguish the similarities and differences between the federal and state budget submission process.
Draw the best response functions : The price p is given by the inverse demand p = 24 - Q where Q = q1 + q2. The unit cost of firm 1 is c1 = 2 and the unit cost of firm 2 is c2 = 14.

Reviews

Write a Review

Business Economics Questions & Answers

  Economy as function of the real wage and the capital stock

Consider an economy with the following Cobb-Douglas production function: derive the equation describing labor demand in this economy as a function of the real wage and the capital stock.

  Slope and position of long-run aggregate supply curve

The slope and position of the long-run aggregate supply curve Suppose the Fed doubles the growth rate of the quantity of money in the economy. In the long run, the increase in money growth will change which of the following? Check all that apply. For..

  Outline a training plan that will help employees

Taking a code of ethics "off the wall and into the hall" can be a particular challenge for medium to large firms with a diverse array of employees.

  Error-of-measurement study

An instrument has been used to measure the length of a part. The result was 6.70052 cm. An error-of-measurement study on the instrument had following results:

  What is the present worth of the winnings

The payments are received at the end of the year, and the winner's interest rate is 12%. What is the present worth of the winnings?

  Nash equilibria of the game

If Malcolm Fights, both politicians gets a payoff of 30. If Malcolm opts to Negotiate, the payoffs are 15 to Malcolm and 15 to Tony. What are the Nash equilibria of the game?

  What is the effective interest rate

At what nominal interest rate will money double in 6 years if interest is compounded quarterly? What is the effective interest rate?

  What is the difference between outsourcing and offshoring

What is the difference between outsourcing and offshoring? What are the different stages involved in an outsourcer-outsourcee relationship.

  Shutdown point case average variable cost market price lt

shutdown point case average variable cost market price lt average total costnbspif the market price in the above

  Purchase increase the present value of the firm

For what range of interest rates would this purchase increase the present value of the firm?

  Describe the different market structures

Describe the different market structures (monopoly, oligopoly, perfect competitive and monopolistic competition) and discuss implications.

  Equality are reflected in the social welfare programming

According to Van Wormer and Link (2015), the faith that even the most disreputable or downtrodden of clients can find some progress in life if they are treated with respect while working on their difficulties is an inherent part of the social work im..

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