Question Background: Assume that the world economy consists of two countries: Russia and Byelorussia. Each country can produce tomatoes and potatoes. Russia can produce 1000 tons of tomatoes or 3000 tons of potatoes or any linear combination of tomatoes and potatoes that satisfies potatoes+3×tomatoes=3000. Byelorussia can produce 1000 tons of tomatoes or 1000 tons of or any linear combination of tomatoes and potatoes that satisfies potatoes+tomatoes=1000. Countries can freely trade with each other.
There are three specific questions that I'm unclear on and would like a more detailed solution to. These detailed solutions would preferably be a written explanation (possibly accompanied by a graph):
c) (2 points) If the equilibrium price of tomatoes is $600/ton, what is the minimum and maximum
possible prices of potatoes?
Answer: min = $200 max = $600
d) (3 points) Assume people in both countries eat the same dish that requires the equal amount of
tomatoes and potatoes to prepare. What will be the Russia’s GDP if the equilibrium price of tomatoes is
Answer: World production: T=P=1500, price of potatos=$200; Russia produces 1500tons of potatoes and 500
tons of tomatoes. Thus, GDP=1500*200+$500*600=$600,000
e) (3 points) Given the same information as in question (d) above, how many tons of potatoes will be
consumed in Russia?
Stone Energy Corporation 's 7.5% bonds due in 2022 were reported as selling for 82.95. Were the bonds selling at a premium or at a discount? Why is Stone Energy Corporati...May 06 2021
The Merriweather Co. just announced that it will pay a dividendnext year of $1.60 and is establishing a policy whereby thedividend will increase by 2.5% annually thereaft...Dec 02 2019
The Evanec Company's next expected dividend, D1, is $3.71; its growth rate is 4%; and its common stock now sells for $36. New stock (external equity) can be sold to net $...Apr 08 2021
Suppose that we have an experiment in which we are studying the dependent variable of “time to perform a task.” There are two factors; one factor is the AGE (Younger, Old...Aug 04 2020
Although cervical cancer is not a leading cause of death among women in the United States, it has been suggested that virtually all such deathsare preventable (5166 A...Aug 02 2020
A 50-Ω lossless line is of length 1.1 λ. It is terminated by an unknown load impedance. The input end of the 50-line is attached to the load end of a lossless 75-Ω line. ...Jun 14 2020
hammett inc has sales of $19570, costs of 9,460, depreciation expense of $2,130 and interest expense of $1,620 if tax rate is 35 percent what is operating cash flow or OCF?Jun 01 2021
what is the percentage of naclo in bleach?Jun 28 2021
what is the accumulated sum of the following stream of payments? $1938 every year at the end of the year for 3 years at 5 percent, compounded annuallyAug 15 2020
Sam owns an insurance agency and makes the following business gifts during the year. Calculate Sam’s deduction for business gifts.Mar 30 2020