Determine the international price of bananas

Reference no: EM13209347

Suppose that countries X and Y produce and consume apple and bananas and Country X initially exports bananas to country Y.

a. Draw the production possibility frontier for the two countries and show their consumption and production points.

b. Work out the effects of the following changes on

1. International price of bananas

2. Output of both goods in both countries.(Show the changes in world relative supply and demand curves and the PPF of each country)

(i) A technological improvement that increases, for any allocation of resources, the output of bananas in country X.

(ii) A tariff levied by country Y on bananas.

Reference no: EM13209347

Questions Cloud

Type of bonding are electrons shared between two atoms : In what type of bonding are electrons shared between two atoms? Which of the following igneous intrusions is tabular and cuts across bedding?

What is the present worth of the savings over 10-years : A concept car that will get 100 miles per gallon and carry 4 persons would have a carbon-fiber and aluminum composite frame with 900 cc three cylinder turbodiesel / electric hybrid power plant. The extra cost of these technologies is estimated to ..

What would happen if we relax the ceteris paribus assumption : Other things being equal, a rise in a country's terms of trade increases its welfare. What would happen if we relax the ceteris paribus assumption, and allow for the law of demand to operate internationally.

Acts resulting in injury would be negligence per se : Which of the following acts resulting in injury would be negligence per se?

Determine the international price of bananas : Work out the effects of the following changes on 1. International price of bananas 2. Output of both goods in both countries.(Show the changes in world relative supply and demand curves and the PPF of each country).

Explain the synthesis of diphenylacetylene : During the synthesis of diphenylacetylene, why is it more difficult to remove KBr for the second time

Customer tracking system : Which installation options are available for the Customer Tracking System? Which would you recommend?

What is the effective annual interest to pay : Your business manufactures a component for an OEM customer who pays you every quarter for your products. You must borrow $3.5 million to expand your warehouse. You arrange to borrow the money from the bank at 8% APR compounded monthly.

Summarize the purpose of plea bargains : Summarize the purpose of plea bargains. Provide examples of types of plea bargains. Include any positive and negatives for each type of plea bargain. Compare arguments for and against the use of plea bargains.

User Account

All Pages