Price per kg 1. The supply and demand graph below shows the market for coffee in...
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Price per kg 1. The supply and demand graph below shows the market for coffee in the country of Idealia. Idealia is currently closed to trade, but is considering opening its markets. Domestic market for coffee (without trade) $9 $8 $7 $6 $2 $1 $0 0 1,000 2,000 3,000 3,000 4,000 5,000 6,000 6,000 7,000 8,000 9,000 Quantity (tons) a. What is the equilibrium price and quantity in autarky? b. If the world price of coffee was $7/kg, how many tons of coffee would Idealia export? c. If the world price of coffee was $4/kg, how many tons of coffee would Idealia import? d. If the world price of coffee was $2/kg, how many tons of coffee would Idealia export? e. If the world price of coffee was $2/kg, what would be the new quantity of coffee produced domestically? f. If the world price of coffee was $2/kg, what would be the new quantity of coffee consumed domestically? Price per kg 1. The supply and demand graph below shows the market for coffee in the country of Idealia. Idealia is currently closed to trade, but is considering opening its markets. Domestic market for coffee (without trade) $9 $8 $7 $6 $2 $1 $0 0 1,000 2,000 3,000 3,000 4,000 5,000 6,000 6,000 7,000 8,000 9,000 Quantity (tons) a. What is the equilibrium price and quantity in autarky? b. If the world price of coffee was $7/kg, how many tons of coffee would Idealia export? c. If the world price of coffee was $4/kg, how many tons of coffee would Idealia import? d. If the world price of coffee was $2/kg, how many tons of coffee would Idealia export? e. If the world price of coffee was $2/kg, what would be the new quantity of coffee produced domestically? f. If the world price of coffee was $2/kg, what would be the new quantity of coffee consumed domestically?
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