Question 1 Below, you are provided with the domestic demand and supply curves for palm trees....

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Question 1 Below, you are provided with the domestic demand and supply curves for palm trees. Use this diagram to answer all parts of this question. Price $1,400 $1,200 $1,000 $800 $600 $400 $200 50 100 150 200 Supply Demand 250 300 350 Quantity of Palm Trees Part (i): Suppose that the world price of a palm tree is $700 (i.e., that American sellers can sell an unlimited number of palm trees for $700 each, and that American consumers can purchase an unlimited number of palm trees for $700 each). How many palm trees will American consumers purchase? Part (ii): Suppose that the world price of a palm tree is $700. How many palm trees will American sellers sell? How many palm trees will the United States export? Part (iii): Suppose that the world price of a palm tree is $800 (i.e., that American sellers can sell an unlimited number of palm trees for $800 each, and that American consumers can purchase an unlimited number of palm trees for $800 each). How many palm trees will American consumers purchase? Part (iv): Suppose that the world price of a palm tree is $800. How many palm trees will American sellers sell? How many palm trees will the United States export? Part (v): If a country currently exports a good or service, and the world price of that good or service rises, what is the effect on: 1) domestic production, 2) domestic consumption, and 3) the quantity of exports? Question 1 Below, you are provided with the domestic demand and supply curves for palm trees. Use this diagram to answer all parts of this question. Price $1,400 $1,200 $1,000 $800 $600 $400 $200 50 100 150 200 Supply Demand 250 300 350 Quantity of Palm Trees Part (i): Suppose that the world price of a palm tree is $700 (i.e., that American sellers can sell an unlimited number of palm trees for $700 each, and that American consumers can purchase an unlimited number of palm trees for $700 each). How many palm trees will American consumers purchase? Part (ii): Suppose that the world price of a palm tree is $700. How many palm trees will American sellers sell? How many palm trees will the United States export? Part (iii): Suppose that the world price of a palm tree is $800 (i.e., that American sellers can sell an unlimited number of palm trees for $800 each, and that American consumers can purchase an unlimited number of palm trees for $800 each). How many palm trees will American consumers purchase? Part (iv): Suppose that the world price of a palm tree is $800. How many palm trees will American sellers sell? How many palm trees will the United States export? Part (v): If a country currently exports a good or service, and the world price of that good or service rises, what is the effect on: 1) domestic production, 2) domestic consumption, and 3) the quantity of exports?

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Part i When the world price of a palm tree is 700 we need to determine the quantity of palm trees American consumers will purchase To find this we look at the demand curve and find the quantity demand... View the full answer