ECON101 Lecture 3: Chapter 2

Plot both  Rene's total utility graph and marginal utility graph.

G-20 leaders look to shake off lingering economic troubles. For the world economy to emerge stronger from the global financial crisis, experts say that savings by the United States, investment by Japan, and consumption by China will all have to increase. Source: USA Today, September 23, 2009

Explain how experts' advice will affect the market for loanable funds in the United States, Japan, and China.

Suppose Qd=-23*P+670, Qs=30*P+12 for home and Qd*=-23*P+402, Qs*=30*P+34 for foreign. Further, suppose that the importing country places a tariff of 0.23 on the product. What is the price paid by the importing country to two decimal places?