need help with these questions

4. Suppose Manitoba and Saskatchewan produce and consume two goods: Wheat and Fish. Assume labour is the only input into production of both goods and each province produces the following output per worker: Output per unit of labour Wheat (in bushels) Fish (in kg) Manitoba 1 0 40 Saskatchewan 3O 1 5 a. Complete the following table (show your work). (2 marks) Production unit of Labour Opportunity cost of 1 Opportunity cost of 1 bushel of Wheat (in kg of Fish (in terms of terms of fish) wheat) Manitoba Saskatchewan b. Does Manitoba have a comparative advantage in producing either good? If so which good? Why? Does Saskatchewan have a comparative advantage in producing either good? If so which good? Why? (1 mark) Page 5 of 9 ECON 1210 Assignment 1 Fall 2020 Instructor: Jesse Hajer c. Assume Manitoba has a population of 2 million and Saskatchewan has a population of 1.5 million. Complete the following table (show your work). (1 mark) Total Output Wheat (in millions of Fish (in millions of kg) bushels) Manitoba Saskatchewan d. Draw the production possibilities frontiers (PPF) for Manitoba and Saskatchewan (on separate graphs). Label the x and y axes and the quantities where the PPF intercepts each axis. (1 mark) e. Assume wheat and fish trade at 1:1 (i.e. 1 kg of fish for 1 bushel of wheat). 0n the graphs you made for part d, draw the consumption possibilities frontier for each province if the two provinces now trade with each other. (1 mark) Part C: {Total 5 marks) 5. Suppose Manitoba Hydro (the public corporation that provides natural gas to Manitobans) cuts in half the price of natural gas (a oommonly used home heating fuel). a. What would be the impact on the market price and quantity of insulation {a oonstructionfrenovation material that reduces the amount of fuel required to heat a home)? Assume the market for insulation is perfectly competitive. (4 marks) ' Use a supply and demand graph to explain. ' Clearly label the price and quantity of insulation before and after the price increase of natural gas. Use words [compete sentences) to explain your graph. Pageof') ECON 1210 Assignment 1 Fall 2020 Instructor: Jesse Hajer b. Suppose that the market for insulation was supplied by one company (a monopolist). Would our supply and demand curve analysis! framework still be valid? Briefly explain. [1 mark) Part D (Total 3 marks) 6. Suppose Shelly, a candidate running for Mayor, said the following: Not enough people are using the bus; many of our buses run half-empty. lfl am elected, l lwill reduce bus fares. This will get more people to ride the bus and total revenue from bus rides lwill increase. a. What is Shelly assuming about the elasticity of demand for bus transit? {1 mark) b. Let P1 equal the price of bus transit {bus fares) before the decrease in bus fares and P2 to the price of after the decrease. Which of the following graphs better represents the demand curve for bus transit envisioned by Shelly, Graph A or Graph B? Explain your answer. (1 mark) OM! P: k __________________ E g E '= E mvmm E E E b m as \"mum c. From the graph, how would you calculate the change in total revenue given a change in price {X refers to the darker shaded areas and W and Y refer to the lighter shaded areas)? {1 mark) d. If P1 = 54, P2 = $3, Q1 = 10,000, Q2 = 50,000, Q3 = 60,000 and Q4 = 00,000, calculate the change in total revenue in the case envisioned by Shelly. Show your work. (2 marks) Page7of9 Part E. (Total 8 marks} Answer m of the below questions (7 or 8) in Part E: 1 In September of 2018, a coalition of labour unions and anti-poverty activists launched a campaign calling on the Government of Manitoba to increase the minimum wage to 515 per hour. a. What are some of the reasons such groups or others might put forward for raising the minimum wage? (1 mark) b. Using a supply and demand diagram, illustrate the impact of an increasing in the minimum wage to 515 per hour on the market for low! unskilled labour. (4 marks} i. Assume that the current minimum wage is so low that It is not binding, and that the market is currently in equilibrium at a wage of 512 per hour. ii. Clearly label the wage and quantity of labour supplied and demanded before and after the implementation of the $15 per hour minimum wage. iii. Use words (compete sentences} to explain your graph. c. In the simple supply and demand model, are more or less workers employed after the minimum wage increase? (1 mark) d. What does the supply and demand model used above assume with respect to competition and employer power over workers (due to for example, monopsony and the costs to workers associated with job searchlloss}? (1 mark} e. If these assumptions (in part d) are violated, do your conclusions regarding employment {in part c) above still hold? Explain. (1 mark) 3. In Canada, In the 19?Ds, In response from concerns from farmers, the federal government introduced \"supply management" in the markets for eggs, dairy and poultry. Page 3 of 9 ECON 1210 Assignment 1 - Fall 2020 Instructor: Jesse Hajer a. What are some of the reasons that farmers and the government put fonuvard to justify supply management? (1 mark) b. Using a supply and demand diagram, illustrate the impact of a government imposed supply restriction (quota) on the supply of milk. Assume the market would otherwise be in equilibrium. Clearly label the price and quantity before and after the implementation of supply restriction. Use words {compete sentences} to explain your graph. (4 marks) c. Explain the impact on consumers of the supply quota in the simple supply and demand model. Are consumers better or worse off compared to prior than the quota? (1 mark} d. What are some of the assumptions underlying the above supply and demand framework that may not hold in practice in agricultural markets? (1 mark] e. If these assumptions (in part d) are violated, are the conclusions of the supply and demand model for consumers {in part c} necessarily hold? Briefly explain. (1 mark}