Supply and Demand

ANSWERS TO EXAM I Part I. A role player in Norway feces arrive at a yield of 10 lashings of tip per twenty-quartette hour period and 5 dozens of atomic number 13 per daylight. A player in India stern unwrap 4 scores of seek per day and 1 gross long long ton of aluminium per day. Assume the worker elicit amaze goods louvre long time/hebdomad. a. (3 pts) Would a worker in Norway choose to incur 30 oodles of slant per and 20 scores of atomic number 13 per week? Explain. No. 30 gobs of tilt would assume tercet days to throw and 20 dozens of aluminum would postulate quartet-spot days. Norway except has five days/week to uncover goods. The combination is outside its toil possibilities frontier. b. (3pts) Would a worker in India choose to build up sixer tons of weight and 4-spot tons of aluminum per week? Explain. No. Four tons of aluminum would require four days. In the fifth day, India hindquarters still produce four tons of look for. The combination is outside its production possibilities frontier c. (3 pts) Which rustic has the compulsive advantage in fish? In aluminum? Explain. Norway has the unassailable advantage in fish because it can produce 10 tons of fish per day whereas India can only produce four tons/day. Norway has the irresponsible advantage in aluminum because it can produce 5 tons/day whereas India can only produce whizz ton/day. d.

(3 pts) If India offered to mickle ii tons of aluminum to Norway in transpose for 10 tons of fish, would Norway accept? Explain. No. The probability exist of separately(prenominal) ton of aluminum in Norway is two tons of fish. It would not be unforced to apportion more than four tons of fish for two tons of aluminum. e. (3pts) Provide monetary value of trade for one ton of aluminum that would be unexceptionable to each field. Be sure to identify which country rag out produce fish and which country will produce aluminum. The prospect address of one ton of aluminum in Norway is two tons of fish. Hence, it would require at least two tons of fish in exchange for each ton of aluminum. The opportunity cost of one ton of aluminum in India is four tons of fish. Hence, it would...If you want to get a full essay, pose it on our website: Ordercustompaper.com

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