The table below shows the domestic supply and demand schedule for rice in Thaila

Question

The table below shows the domestic supply and demand schedule for rice in Thailand. Instructions: Round your answers to the nearest whole number for quantity values. Round your answers to two decimal places for price values. In autarky, the domestic quantity supplied is |f million kilograms and the price is $|per kilogram. The world price of rice is $1.25 per kilogram. (You can assume Thailand is a small producer of rice relative to the world market.) If Thailand opens up to trade in rice, the new domestic price of rice will be per kilogram. million kilograms of rice will be supplied by domestic producers. million kilograms of rice will be demanded by domestic consumers. Thailand will (Click to select) million kilograms of rice.

Explanation / Answer

1) In autarky, QS=QD=2500 and P=$0.50

2)$1.25

3) QS=2800

4) QD= 2350

5) surplus of 450 millionskg of rice

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