Microeconomics (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134184241
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Chapter 1, Problem 5RQ
To determine
Exchange rate between US dollar and Japanese yen.
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The demand for Australian-made motorcycles in Japan is given by: Japanese demand = 10000 –0.001(price of Australian motorcycles in yen).
Similarly, the demand for Japanese-made motorcycles in Australia is: Australian demand = 30 000 –0.2(price of Japanese motorcycles in dollars).
The domestic price of an Australian-made motorcycle is $20 000, and the domestic price of a Japanese-made motorcycle is ¥2 500 000. From the perspective of Australia, find the real exchange rate in terms of motorcycles and net exports of motorcycles to Japan,
if:
a) the nominal exchange rate is 100 yen per dollar
b) the nominal exchange rate is 125 yen per dollar.
c) How does an appreciation of the dollar affect Australian net exports of motorcycles (considering only the Japanese market)?
Factors affecting demand and supply are the various factors that influence the quantity of a good or service that buyers (consumers) are willing to purchase and the quantity that sellers (producers) are willing to produce and sell, respectively. Understanding the factors is important for businesses, policymakers, and consumers to make informed decisions about pricing, production, and consumption.
The prediction is that global consumption of crude oil will exceed production by 20 million barrels this year, which means there will be a shortage of supply. This could lead to further price increases if demand continues to grow, which would result in higher costs for consumers and businesses.
However, this imbalance is likely to be corrected over time as higher prices incentivize more production, while lower demand could lead to a reduction in consumption. Additionally, new sources of supply could come up or existing sources could increase their output in response to higher prices. In the…
Below is my question, also any tips on making it an excel graph?
The major BP oil spill in the Gulf of Mexico substantially reduced the harvest of shrimp and other seafood in the Gulf, but had limited impact on the prices that U.S. consumers paid in 2010 (Emmeline Zhao, “Impact on Seafood Prices Is Limited,", Wall Street Journal, June 20, 2010). The reason was that the United States imports about 83% of its seafood and only 2% of domestic supplies come from the Gulf.
Use a supply-and-demand diagram to illustrate what happened.
Chapter 1 Solutions
Microeconomics (9th Edition) (Pearson Series in Economics)
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