+1-415-670-9189
info@expertsmind.com
What will happen to the price paid by us consumers
Course:- International Economics
Reference No.:- EM13223302




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> International Economics

Now, suppose that Maine lobsters can also be sold in France. The French demand schedule for Maine lobsters is as follows:

Price of lobster Quantity of lobster demanded
(per pound) (pounds)
$ 25 100
$ 20 300
$ 15 500
$ 10 700
$ 5 900

a. What is the demand schedule for Maine lobsters now that French consumers can also buy them?

b. The equilibluim of the French cost per pound would be $20 per pound and the pounds of lobster would be 700 This gives a good opportunity to sell to the fishermans and they would be better off. If they would sell more lobster at a higher price the United States would be worse off. They must pay a higher price for lobster and, as a result, consume less lobster.($20 versus $15 per pounds,400 versus 600 pounds)

c. Using the combined Us and French demand schedule, the US demand schedule and the supply schedule, and the graph below, analyze the change in the market for lobsters. (hint: use the 10 question Worksheet approach) Explain your analysis and answer these two questions.

What will happen to the price at which fishermen can sell lobster?
What will be the final output of lobsters?

d. What will happen to the price paid by U.S. consumers? What will happen to the quantity consumed by U.S. consumers?




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (International Economics) Materials
An industry consists of six companies, with sales of $500,000, $400,000, $300,000, $150,000, 75,000, and $60,000. Now, assume that the largest and smallest companies merge.
A big level of international trade protectionism is required if developing nations are going to be able to industrialize and develop their own domestic industries in face of f
Discuss the characteristics of international, multidomestic, global, and transnational strategies. Include situations and a specific example in which each strategy would be
Use the information in the table on labor productivities in France and Germany to answer the following question Output per Hour Worked France: cheese is 1 kilogram, cars is 0.
According to Jeffrey Sachs, Determine what kinds of development assistance can make a difference in Africa, and what role does he anticipate for the developed world?
Redraw the Demand curve (only) in a new diagram. Demonstrate the Total Revenue change geometrically and indicate the Loss and Gain areas between the prices of $6 and $2 (Price
An increase in foreign output/income (Y*)-assume there is no change in the foreign interest rate and an increase in home country money demand (L)
In the 2012 fiscal year, $74.6 billion in food assistance was distributed to 47.7 million Americans through the Supplemental Nutrition Assistance Program (SNAP). This repres