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Unit 3 Homework Problem 1: Suppose that the supply schedule of Belgium Cocoa beans is as follows: Price of cocoa beans (per pound) Quantity of cocoa beans supplied (pounds) $40 700 $35 600 $30 500 $25 400 $20 300 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) Quantity of Belgium cocoa beans demanded (pounds) $40 100 $35 300 $30 500 $25 700 $20 900 a. Draw the demand curve and the supply curve for Belgium cocoa beans. What are the equilibrium price and quantity of cocoa beans from Belgium? 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) Quantity of Belgium cocoa beans demanded (pounds) $40 200 $35 400 $30 600 $25 800 $20 1000 b. What is the demand schedule for Belgium cocoa beans now that U.S. consumers can also buy them? ... View Full Document

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