# Can I Get Some Assistance On This Problem

Topics: Supply and demand, Demand curve, Inverse demand function Pages: 4 (320 words) Published: May 10, 2015
﻿Can I get some assistance on this problem? Thanks

Suppose that the supply schedule of Belgium Cocoa beans is as follows: Price of cocoa beans
(per pound)
Quantity of cocoa beans supplied
(pounds)
\$40
900
\$35
700
\$30
500
\$25
400
\$20
200
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
(per pound)
European Quantity of Belgium cocoa beans demanded
(pounds)
\$40
100
\$35
300
\$30
500
\$25
700
\$20
900

a 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 appears equilibrium price and quantity of cocoa beans from Belgium \$30.00 and the demand is 500.00

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
(per pound)
U.S. Quantity of Belgium cocoa beans demanded
(pounds)
\$40
200
\$35
400
\$30
600
\$25
800
\$20
1000

b What is the combined (total) demand schedule for Belgian cocoa beans that European and USA consumers buy?

1900

Price of Belgium cocoa beans
U.S. Quantity of Belgium cocoa beans demanded
European Quantity of Belgium cocoa beans demanded
Total Demanded
(per pound)
(pounds)
(pounds)
(pounds)
\$40
200
100

\$35
400
300

\$30
600
500

\$25
800
700

\$20
1000
900

Below is the supply and demand graph that illustrates the new equilibrium price and quantity of cocoa beans from Belgium.

From the supply schedule and the combined U.S. and European demand schedule, what will be the new price at which Belgium plantation owners can sell cocoa beans? \$35.00

What price will be paid by European consumers?

\$30.00

c What will be the quantity consumed by European consumers?

500 Lbs....