Trade in fresh meat products is only allowed domestically at the moment and the demand for them can be described by the
Posted: Thu Apr 28, 2022 12:35 pm
Trade in fresh meat products is only allowed
domestically at the moment and the demand for them can be described
by the function:
QD= 13,000 - 80π (where πD is the
quantity demanded in tonnes and π is the price in $ per
tonnes.)
Domestic supply, on the other hand, can be described by
the function: πS = β15.000 + 200π where
πsis the supply quantity in tonnes.
1) What is the equilibrium quantity (Q *) and the
equilibrium price (P *) of fresh meat in the domestic
market?
2) The government is now considering giving free trade
in fresh meat. Before however, the government wants to know what
the impact will be on the domestic market.
3) The world market price of ham is 165 $ / ton based on
the current exchange rate of the $
a) What will be the quantity demanded domestically?
& What will be the domestic production?
b) What will be the exported quantity if the trade is
given free?
draw a simple graph
domestically at the moment and the demand for them can be described
by the function:
QD= 13,000 - 80π (where πD is the
quantity demanded in tonnes and π is the price in $ per
tonnes.)
Domestic supply, on the other hand, can be described by
the function: πS = β15.000 + 200π where
πsis the supply quantity in tonnes.
1) What is the equilibrium quantity (Q *) and the
equilibrium price (P *) of fresh meat in the domestic
market?
2) The government is now considering giving free trade
in fresh meat. Before however, the government wants to know what
the impact will be on the domestic market.
3) The world market price of ham is 165 $ / ton based on
the current exchange rate of the $
a) What will be the quantity demanded domestically?
& What will be the domestic production?
b) What will be the exported quantity if the trade is
given free?
draw a simple graph