Question

Part II. Problem-solving questions Consult Figure below to finish blanks in Question 16 and 17. Curve SS represents a domestic supply curve for some good X; if X is a competitive industry, then SS represents the horizontal sum of the marginal cost curves of many firms. Curse DD represents domestic demand for the same good. It is implicitly assumed that consumers do not care where the good was made, they simply want to buy the indicated quantities at the indicated prices. 16. OX The market-clearing price in the absence of trade is SLA and_B_units of X would be demanded and supplied domestically at that price. If the world price of $5 were allowed to prevail, though, then_C_units of X would be supplied- D units would be demanded domestically, and Eunits would be imported. (Round your answer to two decimal places unless it is an integer. Please do NOT include words or "S" in your answer.) Your Answers: A:s units Now suppose that the domestic government has been convinced somehow to restrict imports by 50 percent. A tariff of $_F_per unit imported would do the trick, but it would raise the domestic price to $_G_ At that price units would be demanded, Lunits would be supplied domestically, and Lunits would be imported (Round your answer to two decimal places unless it is an integer. Please do NOT include words or "S" in your answer.) Your Answers: FS G: S H: units 1:

Answer 1

I will solve Q16 as per HomeworkLib policy . Kindly accept HOMEWORKLIB RULES and respect the rule.

16) A is $10,B is 10 units ,C is 5 units , D is 20 units , E is 15 units(20-5)

F is $2.5,G is $7.5 (5+2.5),H is 15 units,I is 8.units , J is 7 units (15-8).

Earlier import was 15 units and with tariff it has been reduced to 7 units , almost 50%