Quantity demanded & market price quantity supplied & market price
0 100 0 40
25 80 15 50
40 50 25 80
a. What is the total purchase of tennis racquets? Why?
b. What is the consumer surplus? Why?
c. What is the increase in consumer surplus when the market price drops to $ 50?
d. What is the increase in producer surplus when the market jumps to 80?
e. Deduce and explain the total surplus
Consider a hypothetical example of trade between the United States (a developed country) and Brazil (a developing country) is as follow
|
U.S. Exports ($b) to Brazil
|
U.S. Imports ($b) from Brazil
|
|
Lotion & Powder
|
80
|
65
|
|
Perfume
|
70
|
120
|
|
Fragrance
|
100
|
70
|
Find:
a. the total trade ( TT) between the US and Brazil
b. the net trade (NT)
c. the intra industry trade (IIT)
d. the intra industry trade share
Required: All work must be typewritten. The theoretical questions can beresearched and paraphrased (put in your own words) since this is not a copy and paste exercise. Credit must be given to your sources of information and a work cited section must be provided. The practicum responses mustshow the work not just the answer.