Identify the price and quantity of a container of roses without international trade.

Question

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Answer 1

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 15, Problem 1SPA

(a)

To determine

Identify the price and quantity of a container of roses without international trade.

(a)

Expert Solution

Explanation of Solution

Table-1 shows the data of quantity demanded and quantity supplied as follows:

Macroeconomics, Chapter 15, Problem 1SPA

According to the equilibrium condition, the number of the container of roses is produced where the quantity demanded is equal to the quantity supplied and the price is charged at the corresponding equilibrium quantity level. Since the quantity demanded is equal to the quantity supplied, Country U produces 6 million containers per year. In this equilibrium, the price level is $175 per container. Therefore, without international trade, Country U will charge the price of a container of roses as $175 and in a year, the quantity sold and bought is 6 million containers.

(b)

To determine

Identify the comparative advantage in producing roses.

(b)

Expert Solution

Explanation of Solution

According to Table-1, the price charged by Country U is $175 per container. The wholesalers brought roses at auction from Countries A and H for $125 per container. The cost of production of roses in Country U is higher than that of Countries A and H. Therefore, the rest of the world has a comparative advantage in producing roses than Country U.

Economics Concept Introduction

Comparative advantage: Comparative advantage is a term in economics that explains the ability of a country to produce an output or production of goods and services in an economy at a minimum opportunity cost when compared to the business partners, and it realizes better profits or sales margins.

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Answer 2

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 15, Problem 1SPA

(a)

To determine

Identify the price and quantity of a container of roses without international trade.

(a)

Expert Solution

Explanation of Solution

Table-1 shows the data of quantity demanded and quantity supplied as follows:

Macroeconomics, Chapter 15, Problem 1SPA

According to the equilibrium condition, the number of the container of roses is produced where the quantity demanded is equal to the quantity supplied and the price is charged at the corresponding equilibrium quantity level. Since the quantity demanded is equal to the quantity supplied, Country U produces 6 million containers per year. In this equilibrium, the price level is $175 per container. Therefore, without international trade, Country U will charge the price of a container of roses as $175 and in a year, the quantity sold and bought is 6 million containers.

(b)

To determine

Identify the comparative advantage in producing roses.

(b)

Expert Solution

Explanation of Solution

According to Table-1, the price charged by Country U is $175 per container. The wholesalers brought roses at auction from Countries A and H for $125 per container. The cost of production of roses in Country U is higher than that of Countries A and H. Therefore, the rest of the world has a comparative advantage in producing roses than Country U.

Economics Concept Introduction

Comparative advantage: Comparative advantage is a term in economics that explains the ability of a country to produce an output or production of goods and services in an economy at a minimum opportunity cost when compared to the business partners, and it realizes better profits or sales margins.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 15, Problem 1SPA

(a)

To determine

Identify the price and quantity of a container of roses without international trade.

(a)

Expert Solution

Explanation of Solution

Table-1 shows the data of quantity demanded and quantity supplied as follows:

Macroeconomics, Chapter 15, Problem 1SPA

According to the equilibrium condition, the number of the container of roses is produced where the quantity demanded is equal to the quantity supplied and the price is charged at the corresponding equilibrium quantity level. Since the quantity demanded is equal to the quantity supplied, Country U produces 6 million containers per year. In this equilibrium, the price level is $175 per container. Therefore, without international trade, Country U will charge the price of a container of roses as $175 and in a year, the quantity sold and bought is 6 million containers.

(b)

To determine

Identify the comparative advantage in producing roses.

(b)

Expert Solution

Explanation of Solution

According to Table-1, the price charged by Country U is $175 per container. The wholesalers brought roses at auction from Countries A and H for $125 per container. The cost of production of roses in Country U is higher than that of Countries A and H. Therefore, the rest of the world has a comparative advantage in producing roses than Country U.

Economics Concept Introduction

Comparative advantage: Comparative advantage is a term in economics that explains the ability of a country to produce an output or production of goods and services in an economy at a minimum opportunity cost when compared to the business partners, and it realizes better profits or sales margins.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 15, Problem 1SPA

(a)

To determine

Identify the price and quantity of a container of roses without international trade.

(a)

Expert Solution

Explanation of Solution

Table-1 shows the data of quantity demanded and quantity supplied as follows:

Macroeconomics, Chapter 15, Problem 1SPA

According to the equilibrium condition, the number of the container of roses is produced where the quantity demanded is equal to the quantity supplied and the price is charged at the corresponding equilibrium quantity level. Since the quantity demanded is equal to the quantity supplied, Country U produces 6 million containers per year. In this equilibrium, the price level is $175 per container. Therefore, without international trade, Country U will charge the price of a container of roses as $175 and in a year, the quantity sold and bought is 6 million containers.

(b)

To determine

Identify the comparative advantage in producing roses.

(b)

Expert Solution

Explanation of Solution

According to Table-1, the price charged by Country U is $175 per container. The wholesalers brought roses at auction from Countries A and H for $125 per container. The cost of production of roses in Country U is higher than that of Countries A and H. Therefore, the rest of the world has a comparative advantage in producing roses than Country U.

Economics Concept Introduction

Comparative advantage: Comparative advantage is a term in economics that explains the ability of a country to produce an output or production of goods and services in an economy at a minimum opportunity cost when compared to the business partners, and it realizes better profits or sales margins.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 15, Problem 1SPA

(a)

To determine

Identify the price and quantity of a container of roses without international trade.

(a)

Expert Solution

Explanation of Solution

Table-1 shows the data of quantity demanded and quantity supplied as follows:

Macroeconomics, Chapter 15, Problem 1SPA

According to the equilibrium condition, the number of the container of roses is produced where the quantity demanded is equal to the quantity supplied and the price is charged at the corresponding equilibrium quantity level. Since the quantity demanded is equal to the quantity supplied, Country U produces 6 million containers per year. In this equilibrium, the price level is $175 per container. Therefore, without international trade, Country U will charge the price of a container of roses as $175 and in a year, the quantity sold and bought is 6 million containers.

(b)

To determine

Identify the comparative advantage in producing roses.

(b)

Expert Solution

Explanation of Solution

According to Table-1, the price charged by Country U is $175 per container. The wholesalers brought roses at auction from Countries A and H for $125 per container. The cost of production of roses in Country U is higher than that of Countries A and H. Therefore, the rest of the world has a comparative advantage in producing roses than Country U.

Economics Concept Introduction

Comparative advantage: Comparative advantage is a term in economics that explains the ability of a country to produce an output or production of goods and services in an economy at a minimum opportunity cost when compared to the business partners, and it realizes better profits or sales margins.

Answer 6

Chapter 15, Problem 1SPA

(a)

To determine

Identify the price and quantity of a container of roses without international trade.

(a)

Expert Solution

Explanation of Solution

Table-1 shows the data of quantity demanded and quantity supplied as follows:

Macroeconomics, Chapter 15, Problem 1SPA

According to the equilibrium condition, the number of the container of roses is produced where the quantity demanded is equal to the quantity supplied and the price is charged at the corresponding equilibrium quantity level. Since the quantity demanded is equal to the quantity supplied, Country U produces 6 million containers per year. In this equilibrium, the price level is $175 per container. Therefore, without international trade, Country U will charge the price of a container of roses as $175 and in a year, the quantity sold and bought is 6 million containers.

Answer 7

Chapter 15, Problem 1SPA

(a)

To determine

Identify the price and quantity of a container of roses without international trade.

Answer 8

(a)

Expert Solution

Explanation of Solution

Table-1 shows the data of quantity demanded and quantity supplied as follows:

Macroeconomics, Chapter 15, Problem 1SPA

According to the equilibrium condition, the number of the container of roses is produced where the quantity demanded is equal to the quantity supplied and the price is charged at the corresponding equilibrium quantity level. Since the quantity demanded is equal to the quantity supplied, Country U produces 6 million containers per year. In this equilibrium, the price level is $175 per container. Therefore, without international trade, Country U will charge the price of a container of roses as $175 and in a year, the quantity sold and bought is 6 million containers.

Answer 9

(a)

Expert Solution

Answer 10

(a)

Expert Solution

Answer 11

Expert Solution

Answer 12

(b)

To determine

Identify the comparative advantage in producing roses.

(b)

Expert Solution

Explanation of Solution

According to Table-1, the price charged by Country U is $175 per container. The wholesalers brought roses at auction from Countries A and H for $125 per container. The cost of production of roses in Country U is higher than that of Countries A and H. Therefore, the rest of the world has a comparative advantage in producing roses than Country U.

Economics Concept Introduction

Comparative advantage: Comparative advantage is a term in economics that explains the ability of a country to produce an output or production of goods and services in an economy at a minimum opportunity cost when compared to the business partners, and it realizes better profits or sales margins.

Answer 13

(b)

To determine

Identify the comparative advantage in producing roses.

Answer 14

(b)

Expert Solution

Explanation of Solution

According to Table-1, the price charged by Country U is $175 per container. The wholesalers brought roses at auction from Countries A and H for $125 per container. The cost of production of roses in Country U is higher than that of Countries A and H. Therefore, the rest of the world has a comparative advantage in producing roses than Country U.

Answer 15

(b)

Expert Solution

Answer 16

(b)

Expert Solution

Answer 17

Expert Solution

Answer 18

Economics Concept Introduction

Comparative advantage: Comparative advantage is a term in economics that explains the ability of a country to produce an output or production of goods and services in an economy at a minimum opportunity cost when compared to the business partners, and it realizes better profits or sales margins.

Answer 19

Ch. 15.1 - Prob. 1RQ Ch. 15.1 - Prob. 2RQ Ch. 15.2 - Prob. 1RQ Ch. 15.2 - Prob. 2RQ Ch. 15.2 - Prob. 3RQ Ch. 15.3 - Prob. 1RQ Ch. 15.3 - Prob. 2RQ Ch. 15.3 - Prob. 3RQ Ch. 15.3 - Prob. 4RQ Ch. 15.3 - Prob. 5RQ

Identify the price and quantity of a container of roses without international trade.

Identify the price and quantity of a container of roses without international trade.

Explanation of Solution

Identify the comparative advantage in producing roses.

Explanation of Solution

Want to see more full solutions like this?

Chapter 15 Solutions