Problem Sets - Macro

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checyr091

Economics

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Looking for a tutor to answer the attached problem set which is the quantitative aspects of the Macro material.

E-book (chapters 1-4) will be provided to the selected tutor.

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Problem Set 1) Chapter 2 “Problems and Applications” number 2.7 (Related to Solved Problem 2.2 around page 52) Suppose that France and Germany both produce schnitzel and wine. The following table shows combinations of the goods that each country can produce in a day: a. Which country has a comparative advantage in producing wine? Which country has a comparative advantage in producing schnitzel? France Germany Wine (bottles) Schnitzel (pounds) Wine (bottles) Schnitzel (pounds) 0 8 0 15 1 6 1 12 2 4 2 9 3 2 3 6 4 0 4 3 5 0 b. Suppose that France is currently producing 1 bottle of wine and 6 pounds of schnitzel, and Germany is currently producing 3 bottles of wine and 6 pounds of schnitzel. Demonstrate that France and Germany can both be better off if they specialize in producing only one good and then trade for the other. 2) Chapter 3 (Related to Problems and Applications 3.1.10 p.101 and 3.2.7 p.103.) Suppose that the following table shows the quantity demanded and the quantity supplied of UGG boots at five different prices in 2019. Price $ 160 170 180 190 200 Quantity Demanded in 2019 (thousands of pairs of boots) 4,000 3,500 3,000 2,500 2,000 Quantity Supplied in 2019 (thousands of pairs of boots) 2,000 2,500 3,000 3,500 4,500 a. What is the equilibrium price in this market? b. What is the equilibrium quantity? c. At which of the price(s) in the table would there be a surplus of boots? d. At which of the price(s) in the table would there be a shortage of boots? 3) Chapter 3 “Problems and Applications” 4.15 The following four graphs represent four market scenarios, each of which would cause either a movement along the supply curve for premium bottled water or a shift of the supply curve. Match each scenario with the appropriate graph. a. A decrease in the supply of sports drinks b. A drop in the average household income in the United States from $56,000 to $52,000 c. An improvement in the bottling technology for premium bottled water d. An increase in the prices of electrolytes used in premium bottled water 4) Chapter 4 “Problems and Applications” 1.7 Consider the information given in the following table on four consumers in the market for premium bottled water. Consumer Highest Price Willing to Pay Jill $4 Jose $3 Josh $2 Jordan $1 a. If the price of a bottle of premium water is $1.50, what is the total consumer surplus received by these consumers? b. Suppose the price of premium bottled water rises to $2.50. Now what is the consumer surplus received by these consumers?
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Anonymous
Very useful material for studying!

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