Question 1 Below, you are provided with the domestic demand and supply curves for palm trees. Use this diagram to answer all parts of this question. Price $1,400 $1,200 $1,000 $800 $600 $400 $200 50 100 150 200 Supply Demand 250 300 350 Quantity of Palm Trees Part (i): Suppose that the world price of a palm tree is $700 (i.e., that American sellers can sell an unlimited number of palm trees for $700 each, and that American consumers can purchase an unlimited number of palm trees for $700 each). How many palm trees will American consumers purchase? Part (ii): Suppose that the world price of a palm tree is $700. How many palm trees will American sellers sell? How many palm trees will the United States export? Part (iii): Suppose that the world price of a palm tree is $800 (i.e., that American sellers can sell an unlimited number of palm trees for $800 each, and that American consumers can purchase an unlimited number of palm trees for $800 each). How many palm trees will American consumers purchase? Part (iv): Suppose that the world price of a palm tree is $800. How many palm trees will American sellers sell? How many palm trees will the United States export? Part (v): If a country currently exports a good or service, and the world price of that good or service rises, what is the effect on: 1) domestic production, 2) domestic consumption, and 3) the quantity of exports?