Question

In: Economics

The European Union (EU) and United States (US) demand and supply equations for corn are: QDEU...

The European Union (EU) and United States (US) demand and supply equations for corn are: QDEU = 70 – 2 PEU QSEU = 20 + 3PEU QDUS = 130 – 3PUS QSUS = 30 + PUS where QD and QS represent the quantities demanded and supplied in both countries (in billions of tons) and P represents the Dollar price per ton of corn in each country. a. Graph the US and European Union supply and demand curves for corn (what are the intercepts?). b. Determine the US and European Union equilibrium prices in the absence of trade. c. Find the surplus (or shortage) in both countries at the price of $ 20.

Solutions

Expert Solution

a) Intercepts are found by replacing the x-axis variable(quantity) by 0 and then by replacing the y-axis variable (price) by 0.

b) for equilibrium equate demand with supply for each country. After finding the equilibrium price put it back in any one equation (demand or supply, I have used Demand) to find out the equilibrium quantity.

Rahul Sunny answered 1 year ago
Next > < Previous

Related Solutions

2. The European Union (EU) and United States (US) demand and supply equations for corn are:...
2. The European Union (EU) and United States (US) demand and supply equations for corn are: QDEU = 70 – 2 PEU             QSEU = 20 + 3PEU QDUS = 130 – 3PUS QSUS = 30 + PUS where QD and QS represent the quantities demanded and supplied in both countries (in billions of tons) and P represents the Dollar price per ton of corn in each country. a. Graph the US and European Union supply and demand curves for corn...
2. The European Union (EU) and United States (US) demand and supply equations for corn are:...
2. The European Union (EU) and United States (US) demand and supply equations for corn are: QDEU = 70 – 2 PEU QSEU = 20 + 3PEU QDUS = 130 – 3PUS QSUS = 30 + PUS where QD and QS represent the quantities demanded and supplied in both countries (in billions of tons) and P represents the Dollar price per ton of corn in each country. a. Graph the US and European Union supply and demand curves for corn...
The European Union (EU) and United States (US) demand and supply equations for corn are: QDEU...
The European Union (EU) and United States (US) demand and supply equations for corn are: QDEU = 70 – 2 PEU QSEU = 20 + 3PEU QDUS = 130 – 3PUS QSUS = 30 + PUS where QD and QS represent the quantities demanded and supplied in both countries (in billions of tons) and P represents the Dollar price per ton of corn in each country. Now assume that there is free trade between the European Union and US. d....
2. The European Union (EU) and United States (US) demand and supply equations for corn are:...
2. The European Union (EU) and United States (US) demand and supply equations for corn are: QDEU =70–2PEU QSEU =20+3PEUQDUS = 130 – 3PUS QSUS = 30 + PUS where QD and QS represent the quantities demanded and supplied in both countries (in billions of tons) and P represents the Dollar price per ton of corn in each country. f. How much corn is traded between the two regions. Draw graphs to represent the market situation before and after trade....
Critically evaluate the trade dispute between the United States (US) and European Union (EU) and its...
Critically evaluate the trade dispute between the United States (US) and European Union (EU) and its impact on international trade and welfare. The student needs to analyze the welfare effects (producers, consumers, government) and trade effects from the trade dispute.
Macroeconomics Aggregate demand/supply Since Brexit, the United Kingdom (UK) and the European Union (EU) have been...
Macroeconomics Aggregate demand/supply Since Brexit, the United Kingdom (UK) and the European Union (EU) have been negotiating a new relationship. The success of the UK economy in benefitting from this new relationship depends very significantly on the government of UK instilling confidence in people that this new relationship will not significantly diminish UK access to EU markets, thereby generating positive expectations about the UK's future. Why? Explain using appropriate graphs. Note there is both a domestic and an international dimension...
What is the sanctions process in the United States, the United Nations, in the European Union?
What is the sanctions process in the United States, the United Nations, in the European Union?
c. The United Kingdom (UK) left the European Union (EU) at the end of January 2020....
c. The United Kingdom (UK) left the European Union (EU) at the end of January 2020. Ignore any condition or terms of exit from the EU. Briefly describe the expected effect of UK’s separation/divorce from EU on the economies in rest of world. Refer to the definition that an economy is small when world prices and interest rates are independent of domestic economic conditions and your classification of the UK. (You are applying your knowledge about small or large open...
Right now the United States and the European Union are in the process of renegotiating their...
Right now the United States and the European Union are in the process of renegotiating their trade agreement. What does the proposed agreement between the United States and the European Union mean for U.S. companies selling to the European Union? Will consumers benefit? How will the article As Merkel Eyes Exit, Nervous E.U. Wonders Who'll Take the Stage, impact their interaction? Would you have proposed any different terms for the US in its upcoming trade agreement with the E.U. to...
When new European Union member countries join the EU they become subject to the European Union...
When new European Union member countries join the EU they become subject to the European Union competition law--a law that regulates anticompetitive behavior and keeps markets within Europe more competitive (meaning firms have less market power). Using an AS-AD framework, briefly discuss the effect of the competition law on a country's decision to become an EU member country. Your (brief) discussion should include effects on the labor market as well as prices and output. You may find a graph or...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT