Q2: Many of the goods that China’s Citizens enjoy are produced abroad, and many of the goods produced in the China are s

[answerhappygod]

Q2: Many of the goods that China’s Citizensenjoy are produced abroad, and many of the goods produced in theChina are sold abroad. When goods are produced abroad and solddomestically, the process is called import andwhen goods are produced domestically and sold abroad, that processis called export. Suppose an average worker inChina can produce one kg of soybeans in 40 minutes and one Kg ofcoffee in 120 minutes, while an average worker in Paraguay canproduce one kg of soybeans in 100 minutes and one kg of coffee in150 minutes. Answer the followingquestions. [6Marks]
Q3: Illustrates the interaction (equilibriumpoint) of demand and supply in the market for petrol based on thetable below. And explain followingconditions. [5 Marks]
Price (per gallon in $)
Quantity Demanded (millions of gallons)
Quantity Supplied (millions of gallons)
1.00
800
500
1.20
700
550
1.40
600
600
1.60
550
640
1.80
500
680