1. If a 20 increase in the price of a commodity caused a 30% decline in its purchase, acalculate the corresponding demand elasticity for the commodity Is demand elastic?
2. Outline the differences between Adam Smith and Mercantilists with respect to their concept of trade.
Qd=300-20p Demand Qs=-100+2p Supply.
1. What is the direction of the pressure on price induced by the result in "a"?
2. What is the direction of market pressure on p associated with the result in "c"?
3. Compute the elasticity of demand for the price change from p=8 to p=12
4.Find the equilibrium price and equilibrium quantity. (Need Graph)
1. Define absolute advantage as used in trade theory
2. Define comparative advantage.
3.
|
Labor hours required per unit
|
BRAZIL
|
ARGENTINA
|
|
COAT
|
100
|
90
|
|
JAKET
|
120
|
80
|
a. Which country has absolute advantage coat production. ARGEN
b. Which country has absolute advantage jacket production. ARGEN
c. Which country has comparative advantage in coat production.
d. Which country has comparative advantage in jacket production