Micro Unit 3 Essay Example

Unit 3 Assignment: Problem 1 and 2

Name: David Cortese
Course Number: -
Section Number: -
Unit Number: - 3
Date: September 2, 2013

Problem 1:

Suppose that the supply schedule of Belgium Cocoa beans is as follows:

Suppose that Belgium cocoa beans can be sold only in Europe. The European demand schedule for Belgium cocoa beans is as follows:

|Price of Belgium cocoa beans |European Quantity of Belgium cocoa beans demanded |
|(per pound) |(pounds) |
|$40 |100 |
|$35 |300 |
|$30 |500 |
|$25 |700 |
|$20 |900 |

Below is the graph of the demand curve and the supply curve for Belgium cocoa beans. From the supply and demand schedules above, what are the equilibrium price and quantity of cocoa beans from Belgium?
It would be from 200 ($20) to 900 ($40)

[pic]

Now suppose that Belgium cocoa beans can be sold in the U.S. The U.S. demand schedule for Belgium cocoa beans is as follows:

|Price of Belgium cocoa beans |U.S. Quantity of Belgium cocoa beans demanded |
|(per pound) |(pounds)