Homework Answers
Answer
Option 4
the world price is $30
where
quantity supplied or produced domestically =20 units from curve
S.
quantity demanded is 100 units from curve D
where
Import =Qd-Qs=100-20=80
as the imports from the curve x* is 80 at the price of $30 so
option 4 is correct.
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(Figure: The Home and World Markets) The graphs show the case for a tariff imposed by...
(a) Home Market (b) Import Market Price Price Deadweight loss due to the tariffb+d S, S2 D2D Quantity Imports FIGURE 8-5 Effect of Tariff on Welfare The tariff increases the price from PW to pW+ t. A...
(a) Home Market (b) Import Market Price Price Deadweight loss due to the tariffb+d S, S2 D2D Quantity Imports FIGURE 8-5 Effect of Tariff on Welfare The tariff increases the price from PW to pW+ t. As a result, consumer surplus falls by (a + b+ c+ ). Producer surplus rises by area a, and government revenue increases by the area c. Therefore, the net loss in welfare, the deadweight loss to Home, is (b + a), which is measured...
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1. Consider a large country applying a tariff t to imports of a good like that...
1. Consider a large country applying a tariff t to imports of a good like that represented in Figure 8-9, as shown below. Figure 8-9 (a) Home Market (b) World Market Price Price X* +t b + d No-trade equilibrium SS D, D Quantity М. М. Imports a. How does the export supply curve in panel (b) compare with that in the small country case? Explain why these are different. b. Explain how the tariff affects the price paid by...
Need help on Questions 9 and 10. Is the tariff imposed on the equilibrium price at...
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4. Consider a large country importing a good from the world market. The government of this country decides to impos...
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. In the large-country case, when a tariff is imposed, the country: O is going to experience a decrease in producer sur...
. In the large-country case, when a tariff is imposed, the country: O is going to experience a decrease in producer surplus. O is going to experience an increase in consumer surplus. O is able to increase the world price of the imported good. O sees a terms-of-trade gain.
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please show work, Thank you Trade Policy (Total 62 points) 1. (16 points) Consider a small...
please show work, Thank
you
Trade Policy (Total 62 points) 1. (16 points) Consider a small country applying a tariff t to imports of a good like that represented in the Figure below. a. Suppose that the country decides to reduce its tariff to t'. Redraw the graphs for the Home and import markets and illustrate this change. What happens to the quantity of goods produced at Home and their price? What happens to the quantity of imports? b. Are...
(a) Home Market (b) Import Market Price Price Deadweight loss due to the tariffb+d S, S2 D2D Quantity Imports FIGURE 8-5 Effect of Tariff on Welfare The tariff increases the price from PW to pW+ t. As a result, consumer surplus falls by (a + b+ c+ ). Producer surplus rises by area a, and government revenue increases by the area c. Therefore, the net loss in welfare, the deadweight loss to Home, is (b + a), which is measured...
Figure 1 Price ($I X 2 Pricewodd+tariff Price World Domes PriceWorld tariff Price World Domestic 0 20 40 60 80 100 120 340 160 180 200 220 240 260 Quantity Figure 1 depicts the demand and supply curves of t-shirts in a hypothetical small country (Northland). Consider Figure 1. W free trade. Northlands producer Surplus and consumer surplus respectively equal 520.54400 55.5240 55. 5220 $20 52420 550054500
1. Consider a large country applying a tariff t to imports of a good like that represented in Figure 8-9, as shown below. Figure 8-9 (a) Home Market (b) World Market Price Price X* +t b + d No-trade equilibrium SS D, D Quantity М. М. Imports a. How does the export supply curve in panel (b) compare with that in the small country case? Explain why these are different. b. Explain how the tariff affects the price paid by...
Need help on Questions 9 and 10. Is the tariff imposed on the
equilibrium price at $6 or is it imposed on the World Trade price
at $2?
Consumer Surplus, Producer Surplus and Net Benefits (Show all your work). Name (Print): Course: Use the following graph for questions 1-15. P $12- Supply SIO $8 S6 54 SZVU Demand $0 10 211 30 40 50 P.S Quantity 1. Estimate an equation for the demand and supply curves shown in the diagram...
Tariff Analytical Question: Figure: A Tariff on Oranges in South Africa Price of oranges Domestic supply Pt 5.00 G Pw3.00 Domestic demand P-1.00 100 150 250 290 Quantity of oranges Use the following graph and information to answer the following questions: 1) Assume that the world price of Oranges (Pw) is $3.00 per pound. Domestic Quantity Supply is 100, and the Domestic Quantity Demanded is 290 at the current world price of $3.00 What is the level of imports in...
4. Consider a large country importing a good from the world market. The government of this country decides to impose import tariff equal to t. In response to this tariff, foreign exporting firms decide to pay some of the tariff burden and transfer only some of the tariff to the consumers in the importing country. The two graphs below show the effect of the import tariff in the home market and in the world market. Let Pw is the initial...
. In the large-country case, when a tariff is imposed, the country: O is going to experience a decrease in producer surplus. O is going to experience an increase in consumer surplus. O is able to increase the world price of the imported good. O sees a terms-of-trade gain.
6. (Figure: The Markets for Melons in Russia II) Use Figure: The Market for Melons in Russia II. If the world price is $10 and a tariff of $5 is imposed on this market, the burden of the tariff will be borne by: Figure: The Market for Melons in Russia II Price 10 15 20 30 40 50 Quantity of melons O producers. consumers. both producers and consumers. o the government. 8. Which of the following is not an argument...
please show work, Thank
you
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