>> International Economics
Wholesalers of roses by and sell roses in containers thath old 120 stems. The table provides informationabout the wholesale market for roses int he United States. The demand schedule is the wholesaler's demand and the supply schedule is the U.S. rose growers' supply.
Price 100, 125, 150, 175, 200, 225
Q Demand 15, 12, 9, 6, 3, 0
Q supplied 0,2,4,6,8,10
Wholesalers can buy roses at auction in aalsmeet, holland for $125 per container.
a. Without international trade, what would be the price of a container of roses and how many containers of roses a year would be bought and sold in the United States?
b. At teh price in oyur answer to a. does the United States or the rest of the world have a comparative advantage in producing roses?
c. if U.S. wholesalers buy roses at the lowerst possible price, how many do they buy from U.S. growers and how many do they import?
d. Draw a graph to illustrate the U.S. wholesale market for roses. Show on the graph the equilibrium in that market with no international trand and the equilibrium with free trade. Mark on the graph the quantity of roses produced in the United States, the quantity imported, and the total quantity bought.