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Assume that the supply of imported macadamia nuts is perfectly inelastic at a quantity of 100 lbs/day. The domestic supply curve (lbs /day) of macadamia
Assume that the supply of imported macadamia nuts is perfectly inelastic at a quantity of 100 lbs/day. The domestic supply curve (lbs /day) of macadamia nuts is 200 p where p is the price of nuts in $ / lbs. (a) Draw the supply curves for imported, domestic, and total (aggregate) supply of nuts. Clearly label each supply curve. Indicate the total (aggregate) market quantity at $0.50 and $1-00. (in) Now FreedomIsNuts, a US. nut producer group, convinces congress to ban imported macadamia nuts. Does the elasticity of total supply get larger, smaller, or stay the same? Explain
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