Homework Answers
(I) Without tariff:
(i) Domestic demand (Qd) = 16 and Domestic supply (Qs) = 4
Import = Qd - Qs = 16 - 4 = 12
(ii) CS = (1/2) x (12 - 4) x 16 = 8 x 8 = 64
(iii) PS = (1/2) x (4 - 0) x 4 = 2 x 4 = 8
(iv) Tax revenue = 0
(v) SG (Social gain) = CS + PS = 64 + 8 = 72
(II) With tariff: (Price = $4 + $2 = $6)
(i) Qd = 12 and Qs = 6
Import = Qd - Qs = 12 - 6 = 6
(ii) CS = (1/2) x (12 - 6) x 12 = 6 x 6 = 36
(iii) PS = (1/2) x (6 - 0) x 6 = 3 x 6 = 18
(iv) Tax revenue = Unit tariff x post-tariff import = 2 x 6 = 12
(v) SG (Social gain) = CS + PS + Tax revenue = 36 + 18 + 12 = 66
(vi) DWL = Change in SG = 72 - 66 = 6
Add Answer to:
(1 point) The graph below shows the American supply and demand curves for cameras. Both curves...
(1 point) The following graph shows the American supply and demand curves for cameras. Both curves...
(1 point) The following graph shows the American supply and demand curves for cameras. Both curves are straight lines. Japanese cameras, which are identical to American cameras, can be purchased in any quantity for a price of $8 per camera. How many cameras do American's buy? How many cameras do American firms sell? How many cameras are imported from Japan? Suppose the U.S. government imposes a tariff of $4 per Japanese camera. How many cameras are imported? Does the tariff...
33. The following diagram shows the domestic demand and supply curves for sunglasses. Assume that...
33. The following diagram shows the domestic demand and supply curves for sunglasses. Assume that the world price for sunglasses is $10 per unit. 60 50 45 40 35 30 20 15 10 200 400 600 800 1000 Part : With no trade allowed, what are the equilibrium price and equilibrium quantity for sunglasses? Part 2: If the country allows free trade, (a) how many sunglasses will domestic consumers demand and how many sunglasses will domestic producers produce? (b) Will...
3. The following diagram shows the domestic demand and supply curves for sunglasses. Assume that the...
3. The following diagram shows the domestic demand and supply curves for sunglasses. Assume that the world price for sunglasses is S10 per unit. 60 50 45 40 35 30 20 15 10 200 400 600 800 1000 Part 1: With no trade allowed, what are the equilibrium price and equilibrium quantity for sunglasses? Part 2: If the country allows free trade, (a) how many sunglasses will domestic consumers demand and how many sunglasses will domestic producers produce? (b) Will...
9. In figure 1, the wtomobile market demand (D) und supply (S) curves we rwn. If...
9. In figure 1, the wtomobile market demand (D) und supply (S) curves we rwn. If the government Introduces a tax of $10.000 per Incidence would be mobile, the Consumers pay 100 of the time Producers pay 100% of the Consumers pay Sons of the tax while producers pay Sons of the d Consumers pay 75% of the while producers pay 25% of the taxe e Producers pay 75% of the tax while consumers pay 25% of the tax. 10....
Problem IV. Demand and supply curves for two large countries are given by figure 1. Answer...
Problem IV. Demand and supply curves for two large countries are given by figure 1. Answer the following 1. Consider the autarky situation. (a) Calculate CS, PS, GS, and TS for both countries (3 points) 2. Now, suppo countries open to trade (a) Which country imports and which exports? (0.5 point) (b) Derive import demand for importer and export supply for exporter. You can either drawe both curves with appropriate labeling and placing numbers or write equations. ( points) (e)...
(1 point) The graph below shows the demand and supply for potatoes. How much social gain...
(1 point) The graph below shows the demand and supply for potatoes. How much social gain is created by the 2 th pound of potatoes produced? Suppose the government imposes a sales tax on potatoes, and that as a result, the price-plus-tax rises to $10 per poun How much is the tax per pound of potatoes? Assuming the demand and supply curves are straight lines, what is the area of the triangle that represents the deadweig, loss due to the...
The following figure shows the domestic demand and supply curves for a good. With free trade,...
The following figure shows the domestic demand and supply curves for a good. With free trade, the price of the good in the domestic market is P 3. The government introduces a 5% tariff in the market which raises the domestic price to P 2. Figure 7-1 Price Supply Demand A B C D E Quantity Refer to Figure 7-1. The increase in the government's revenue due to the imposition of a tariff is equal to: the area of GFHML....
Problem IV. Demand and supply curves for two large countries are given by figure 1. Answer...
Problem IV. Demand and supply curves for two large countries are given by figure 1. Answer the following questions. (38 points) 1. Consider the autarky situation. (a) Calculate CS, PS, GS, and TS for both countries. (3 povints) 2. Now, suppose countries open to trade. (a) Which country imports and which exports? (0.5 point) (1) Derive import demand for importer and export supply for exporter. You can either draw both curves with appropriate labeling and placing numbers or write equations....
The following graph shows the supply of (orange curve) and demand for (blue curve) computer keyboards....
The following graph shows the supply of (orange curve) and demand for (blue curve) computer keyboards. Determine the equililbrium price and quantity of computer keyboards. Based on this, use the green triangle (triangl symbols) to shade the area representing consumer surplus at the equilibrium price. Then use the purple triangle (diamond symbols) to shade the area representing producer surplus at the equilibrium price. PRICE (Dollars per keyboard) 100 Supply CS 80 PS 60 Demand 40 20 50 100 150200 250...
GS eans government surplus Problem IV. Demand and supply curves for two large countries are given...
GS
eans government surplus
Problem IV. Demand and supply curves for two large countries are given by figure 1. Answer the following questions. (38 points) 1. Consider the autarky situation. (a) Calculate CS, PS, GS, and TS for both countries. (3 povints) 2. Now, suppose countries open to trade. (a) Which country imports and which exports? (0.5 point) (1) Derive import demand for importer and export supply for exporter. You can either draw both curves with appropriate labeling and placing...
(1 point) The following graph shows the American supply and demand curves for cameras. Both curves are straight lines. Japanese cameras, which are identical to American cameras, can be purchased in any quantity for a price of $8 per camera. How many cameras do American's buy? How many cameras do American firms sell? How many cameras are imported from Japan? Suppose the U.S. government imposes a tariff of $4 per Japanese camera. How many cameras are imported? Does the tariff...
33. The following diagram shows the domestic demand and supply curves for sunglasses. Assume that the world price for sunglasses is $10 per unit. 60 50 45 40 35 30 20 15 10 200 400 600 800 1000 Part : With no trade allowed, what are the equilibrium price and equilibrium quantity for sunglasses? Part 2: If the country allows free trade, (a) how many sunglasses will domestic consumers demand and how many sunglasses will domestic producers produce? (b) Will...
3. The following diagram shows the domestic demand and supply curves for sunglasses. Assume that the world price for sunglasses is S10 per unit. 60 50 45 40 35 30 20 15 10 200 400 600 800 1000 Part 1: With no trade allowed, what are the equilibrium price and equilibrium quantity for sunglasses? Part 2: If the country allows free trade, (a) how many sunglasses will domestic consumers demand and how many sunglasses will domestic producers produce? (b) Will...
9. In figure 1, the wtomobile market demand (D) und supply (S) curves we rwn. If the government Introduces a tax of $10.000 per Incidence would be mobile, the Consumers pay 100 of the time Producers pay 100% of the Consumers pay Sons of the tax while producers pay Sons of the d Consumers pay 75% of the while producers pay 25% of the taxe e Producers pay 75% of the tax while consumers pay 25% of the tax. 10....
Problem IV. Demand and supply curves for two large countries are given by figure 1. Answer the following 1. Consider the autarky situation. (a) Calculate CS, PS, GS, and TS for both countries (3 points) 2. Now, suppo countries open to trade (a) Which country imports and which exports? (0.5 point) (b) Derive import demand for importer and export supply for exporter. You can either drawe both curves with appropriate labeling and placing numbers or write equations. ( points) (e)...
(1 point) The graph below shows the demand and supply for potatoes. How much social gain is created by the 2 th pound of potatoes produced? Suppose the government imposes a sales tax on potatoes, and that as a result, the price-plus-tax rises to $10 per poun How much is the tax per pound of potatoes? Assuming the demand and supply curves are straight lines, what is the area of the triangle that represents the deadweig, loss due to the...
The following figure shows the domestic demand and supply curves for a good. With free trade, the price of the good in the domestic market is P 3. The government introduces a 5% tariff in the market which raises the domestic price to P 2. Figure 7-1 Price Supply Demand A B C D E Quantity Refer to Figure 7-1. The increase in the government's revenue due to the imposition of a tariff is equal to: the area of GFHML....
Problem IV. Demand and supply curves for two large countries are given by figure 1. Answer the following questions. (38 points) 1. Consider the autarky situation. (a) Calculate CS, PS, GS, and TS for both countries. (3 povints) 2. Now, suppose countries open to trade. (a) Which country imports and which exports? (0.5 point) (1) Derive import demand for importer and export supply for exporter. You can either draw both curves with appropriate labeling and placing numbers or write equations....
The following graph shows the supply of (orange curve) and demand for (blue curve) computer keyboards. Determine the equililbrium price and quantity of computer keyboards. Based on this, use the green triangle (triangl symbols) to shade the area representing consumer surplus at the equilibrium price. Then use the purple triangle (diamond symbols) to shade the area representing producer surplus at the equilibrium price. PRICE (Dollars per keyboard) 100 Supply CS 80 PS 60 Demand 40 20 50 100 150200 250...
GS
eans government surplus
Problem IV. Demand and supply curves for two large countries are given by figure 1. Answer the following questions. (38 points) 1. Consider the autarky situation. (a) Calculate CS, PS, GS, and TS for both countries. (3 povints) 2. Now, suppose countries open to trade. (a) Which country imports and which exports? (0.5 point) (1) Derive import demand for importer and export supply for exporter. You can either draw both curves with appropriate labeling and placing...
Most questions answered within 3 hours.
-
a
62 kg sprinter, started from resr, runs 47 m in 7 s at a constant...
asked 9 minutes ago -
For python 3.7. This should only be a few lines if any, but for
some reason...
asked 19 minutes ago -
what is IoT? How is it being used today? How will it be used in
the...
asked 33 minutes ago -
Please answer the four questions below.
1. If you were going to test a method that...
asked 48 minutes ago -
Provide two or three examples of support he uses to reinforce
his arguments?
The Alienation of...
asked 55 minutes ago -
QUESTION 1
Why do we see terms with multiple names in the database
community?
Consistency is...
asked 50 minutes ago -
In a titration experiment, 11.5 mL of 0.400 M H2SO4 neutralized
48.0 mL of NaOH. What...
asked 55 minutes ago -
A shot-putter throws the shot with a horizontal velocity of 10
m/s and a
vertical velocity...
asked 1 hour ago -
Mildred sells industrial-sized refrigeration units. Her
prospective buyer's face looks tense, and his forehead is wrinkled....
asked 1 hour ago -
Clark Heter is an industrial engineer at Lyons Products. He
would like to determine whether there...
asked 2 hours ago -
3. Use a text editor to create a comma-delimited file of user
IDs and passwords. Revise...
asked 1 hour ago -
Jensen and Associates has a projected balance
sheet that includes the following accounts. What is the...
asked 1 hour ago