4) Price Level Pa P4; Q4. OP2; Q4. LRAS P4; Q2. OP5; Q3. OP3; Q3. SRAS, None of the above SRAS 0₁ 0₂ 03 04 05 Refer to figure above. Assume the economy is currently in long-run equilibrium with the price level equal to P3. If foreigners begin to buy more U.S. goods, the economy will, in the short run, move to price level equal to ? and Real GDP equal to ADy SRAS, Real GDP
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- In mid-2010, Saudi Arabia and Venezuela (both members of OPEC)produced an average of 8 million and 3 million barrels of oil a day,respectively. Production costs were about $20 per barrel, and the price ofoil averaged $80 per barrel. Each country had the capacity to producean extra 1 million barrels per day. At that time, it was estimated that each1-million-barrel increase in supply would depress the average price of oilby $10.a. Fill in the missing profit entries in the payoff table.b. What actions should each country take and why?Venezuela3 M barrels 4 M barrels8 M barrels _____, _____ _____, _____ Saudi Arabia9 M barrels _____, _____ _____, _____c10GameTheoryandCompetitiveStrategy.qxd 9/29/11 1:33 PM Page 430Summary 431c. Does the asymmetry in the countries’ sizes cause them to take differentattitudes toward expanding output? Explain why or why not. Commenton whether or not a prisoner’s dilemma is present.a) Geppetto and Lewis agree to trade at a rate of 3 puzzles for each puppet. With those terms of trade, who is most likely to be the supplier of puzzles? Who is most likely to be the supplier of puppets? b) The two toy store owners agree to specialize and to trade 30 puzzles for 10 puppets. The terms of trade are still 3 puzzles for each puppet. How many puzzles and puppets will each one have after they complete their trade? Geppetto ? puzzles and ? puppets Lewis ? puzzles and ? puppets Please explain to me how to solve these questions. Don't just give me the answers. Thank you!PLEASE ANSWER AND EXPLAIN NUMBER 2 AND 3Suppose that the world demand and supply elasticities of crude oil are -0.906 and 0.515, respectively. The current equilibrium price is $30 per barrel and the equilibrium quantity is 16.88 billion barrels per year. Derive the linear demand and supply equations. Now suppose the world supply curve you derived above consists of competitive supply and OPEC supply. If the competitive supply equation is: SC = 7.78 + 0.29P, what must be OPEC's level of production in this equilibrium? Now suppose social and political unrest in some non-OPEC producing countries reduced the competitive supply by 30 percent, what happens to the world price of crude oil?
- a) Due to Covid-19, meatpackers are facing substantially higher costs and people are panic buying meat. As a result, we can expect (at least temporarily) Lower prices and no change in quantity Higher prices and an uncertain change in quantity Higher prices and a certain increase in quantity Higher prices and a certain decrease in quantity b) If, against the request of the US, Saudi Arabia decides to further increase the supply of crude oil to the world market, we would expect as a result that (all else equal) the Equilibrium price of crude oil will decrease, and the equilibrium quantity will increase Equilibrium price of crude oil will increase, and the equilibrium quantity will decrease Equilibrium price and quantity of crude oil will increase Equilibrium price and quantity of crude oil will decreaseSuppose that the world price of oil is roughly $50.00 per barrel and that the world demand and total world supply of oil equal 34 billion barrels per year (bb/yr), with a competitive supply of 20 bb/yr and 14 bb/yr from OPEC. Statistical studies have shown that the long-run price elasticity f demand for oil is -0.40, and the long-run competitive price elasticity of supply is 0.40. Using this information, derive linear demand and competitive supply curves for oil. Let the demand curve be of the general form Q = a - bP and the competitive supply curve be of the general form Q = c+dP, where a, b, c, and d are constants. The equation for the long-run demand curve is O A. Q=47.50 -0.27P. O B. Q=13.50 -0.27P. OC. Q=47.50-P O D. Q=47.50+ 0.27P. O E. Q=13.50-47.50P. The equation for the long-run competitive supply curve is O A. Q=12.00 + 47.50P. OB. Q=12.00 -0.16P. OC. Q 8.00+ 0.16P. O D. Q=8.00+ 0.27P. O E. Q=12.00 +0.16P.Which of the following statements is correct Multiple Choice If supply increases and demand increases, equilibrium quantity will rise. If supply increases and demand increases, equilibrium price will rise. If supply increases and demand increases, equilibrium quantity will fall. If supply increases and demand remains constant, equilibrium price will rise. If supply decreases and demand remains constant, equilibrium price will fall. Mc Graw Type here to search
- 1.You have been recently employed as a consultant for a company that produces laptops in Ghana. Suppose the research department of the company have estimated the demand and supply curves of laptops and they are:2Qd + 0.5P − 24 = 0and 4Qs − 2P + 6 = 0You are to use this information toa. Determine the equilibrium level of prices and quantity demand.b. Represent your answer graphically and determine the welfare of economic agents.c. Suppose the government imposes a tax of ¢4 on every laptop sold, determine the new equilibrium price and quantity.d. Represent the new supply curve, old supply curve and the demand curve on a graph showing all equilibria.e. Show how the economic agents share the tax.f. What is the amount of government tax revenue?Rent'R Cars is a multisite car rental company in the city. It is trying out a new "return the car to the locstion most convenient for you" policy to improve customer service. But this means that the company has to constantly move cars around the city to maintain required levels of vehicle oveilebility. The supply and demand for economy cars, and the total cost of moving these vehicles between sites, ore shown below. From\To Supply A $9 $8 $6 $5 se 40 18 75 Denand 68 25 30 165\165 a. Find the solution that minimizes moving costs using Microsoft Excel. (Leave the cells blank, whenever zero (0) Is required.) From/To D E F G supply Candidate solution A 25 25 50 10 30 40 15 60 75 Total shipped 50 60 25 30 165 From/To D E G Supply Cast Total costs FFFWhy did costs for shipping containers increase so sharply during the pandemic? Check all that apply. Companies were ordering more goods to meet increased demand, resulting in increased volume of shipped goods. O Containers were scarce since they were often stuck in locations that did not have cargo to send back to Asia, and demand for shipping was intense. O Container companies increased prices to take advantage of pandemic lulls. Increased demand of digital goods such as video games. In the US, incoming ships overwhelmed the dock capacity and so shipping containers were "trapped" on loaded ships.
- mbam subjects/4/1essons/3/quizzes/1626 Assume that the demand curve D(p) given below is the market demand for widgets: Q = D(p) = 1737 – 16p, p > 0 %3D Let the market supply of widgets be given by: S(p) = 5 + 10p, p > 0 where p is the price and Q is the quantity. The functions D(p) and S(p) give the number of widgets demanded and supplied at a given price. Q: What is the equilibrium price? Please round your answer to the nearest hundredth. What is the equilibrium quantity? Please round your answer to the nearest integer. Q: What is the consumer surplus at equilibrium? Please round the intercept to the nearest tenth and round your answer to the nearest integer.PleaseThe price of oil is currently over $80 per barrel and has been as high as $90 per barrel after Saudi Arabia and a couple of oter OPEC countries reduced output this year. The demand for oil is expected to increase by 1 million barely per day over the next year according to the International Energy Agency but OPEC+ has been unclear about its intentions of increasing oil supplies. a. If OPEC+ increases its production by million barrels per day, we can unambiguously say that the equilibrium price will fall, and the equilibrium quantity will rise.