All categories

2 years ago

Suppose that China is a small country of peanuts import, and the demand and supply of peanuts are as follows:

Business

1 answer:

chubhunter [2.5K]2 years ago

7 0

1. a. Under free trade, China's peanuts domestic production will be 100 units (50 + 5 x 10).

b. Under free trade, China's peanuts import will be 200 units (300 - 100).

c. Under free trade, China's peanuts export will be negative 200 units (100 - 300).

d. Free trade ensures that domestic consumption is met because domestic manufacturers will produce 100 units while the remaining 200 units demanded by consumers will be met through imports.

2. a. With a quota limit of 200 units for peanuts import, peanuts production will still be 100 units (50 + 5 x 10).

b. Under the quota limit, China's peanuts import will be 200 units (300 - 100) since internal production is not more than 100 units.

c. Under the quota limit, China's peanuts export will be zero units.

d. The quota limit will still ensure that domestic consumption is met because the quota of 200 units plus 100 units of internal production will meet domestic demand for 300 units.

<h3>What are Free Trade and Quota?</h3>

Free trade implies the absence of any government-imposed limits on imports and exports. On the other hand, quota refers to the trade restriction imposed by governments.

<h3>Data and Calculations:</h3>

D = 400 - 10P

S = 50 + 5P

Where:

D = Demand

S = Domestic Supply

P = Price

Price = $10

a. The quantity demanded will be 300 units (400 - 10 x 10).

b. The quantity supplied (domestically) will be 100 units (50 + 5 x 10).

c. The import quantity will be 200 units (300 - 100).

c. Quota imposed on imports of peanuts = 200 units

Thus, <u>there will be no changes</u> in the welfare of consumers and manufacturers under the quota limit compared with free trade because the quota meets domestic demand.

Learn more import and export quota systems and free trade here: brainly.com/question/14913943 and brainly.com/question/10608502

You might be interested in

_______ measures how many consumers in a market are familiar with the brand and what it stands for and have an opinion about it.

Anastasy [175]

Answer:

Brand Awareness

Explanation:

Brand Awareness measures how many consumers in a market are familiar with the brand and what it stands for and have an opinion about it. Brand awareness is further consisted of 2 elements:

1: Brand Recognition: is the ability of consumers to confirm previous exposures to brand when they are presented the brand as a cue. For example, if you go to a store, will you be able to recognize the brand to which you have been already exposed?

2: Brand Recall: It is the consumers ability to retrieve the brand from their memory if they are given product category or usage occasion as a cue. For example, when you think of carbonated drink, then what brand comes into your mind?

3 0

3 years ago

What happens if money needs to be transferred from one agency to another and the legislature is not in session to authorize this

kvv77 [185]

Answer:

The legislature budget board and the governor are authorize to transfer money from one agency to other.

Explanation:

Given:

Money needs to be transferred from 1 agency to other when legislature is not in session:

Solution:

When Legislature is not in session, the legislature budget board and the governor are authorize to transfer the money from one agency to other during emergencies.

3 0

3 years ago

Notren, Inc., a U.S. company, and SWT, a Singapore company, entered into a contract under which SWT is to ship party supplies to

enyata [817]

Answer:

Choice of forum clause.

Explanation:

In this scenario, Notren, Inc., a U.S. company, and SWT, a Singapore company, entered into a contract under which SWT is to ship party supplies to Notren.

In the contract agreement, one of the terms of states; "Any disputes that arise under this contract will be resolved in the courts of Singapore."

Hence, this contract term is a choice of forum clause.

A choice of forum clause can be defined as a contractual provision in a contract in which the involved parties stipulates the place of jurisdiction, choice of arbitrators, conciliators, or group of arbitrator or conciliators for any lawsuit, litigations, arbitration, or conciliation arising from the particular contract. In this case, the place of legal jurisdiction is the court of Singapore.

Additionally, a contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law. Also, mutual assent is a legal term which represents an agreement by both parties to a contract. Therefore, mutual assent connotes agreement, acceptance and consent to a contract by both parties.

This ultimately implies that, both Notren Inc. and SWT are in a contract as a result of mutual assent between the two (2) parties.

7 0

3 years ago

How can someone make money legitimately from their phone?

zloy xaker [14]

Answer:

by selling items on ebay

Explanation:

6 0

3 years ago

Read 2 more answers

Cox Electric makes electronic components and has estimated the following for a new design of one of its products:

vfiekz [6]

Answer:

a) attached below

b) P( profit ) = TR(q) - TC(q)

c) attached below

d) -$5000 ( loss )

Explanation:

Given data:

Fixed Cost = $10,000

Material cost per unit = $0.15

Labor cost per unit = $0.10

Revenue per unit = $0.65

<u>a) Influence diagram to calculate profit </u>

attached below

<u>b) derive a mathematical model for calculating profit.</u>

VC = variable cost per unit , LC = per unit labor cost , MC = per unit marginal cost, TC = Total cost of manufacturing , FC = Fixed cost, q = quantity, TR = Total revenue, R = revenue per unit

VC = LC + MC

TC (q) = FC + ( VC * q )

TR (q) = R * q

P( profit ) = TR(q) - TC(q) ------------ ( 1 )

c) attached below

<u>d) If Cox Electrics makes 12,000 units of the new product </u>

The resulting profit = -$5000

q = 12

P = TR ( q ) - TC ( q )

= ( R * q ) - ( Fc + ( Vc * q ) )

= ( 0.65 * 12000 ) - ( 10,000 + ( 0.25 * 12000 )

= -$5200

3 0

3 years ago