5)
pros. of the free trade are as:-
1) boosts the economic growth of the nations through trading.
2) gives encouragement to the small, medium and large size
industry.
3) free trade among nations also boosts democracy.
4) consumers and producers of the nations becomes more aware by
globalisation.
6) cons. of the free trade are as:-
1) it increases the economic inequality. as the richer becomes more
rich and poorers become more poor.
2) it expoits the small industries of the developing
countires.
3) it creates the unemployment in the small countries.
Suppose the U.S. seeks to drastically increase domestic steel production. The current world price for steel is $300 per metric tonne. To increase domestic steel production the U.S. applies a tariff on all imported steel of $200 per metric tonne. What is the price of a metric tonne of steel in the U.S. with the tariff? How does consumer surplus change with the tariff? Indicate the change in consumer surplus using the letters provided. How does producer surplus change with...
please only do problem d e and f thanks! 1) The United States sugar industry has enjoyed trade protection for several years. As a result, sugar prices in the U.S. are higher than the average world price. Suppose that the domestic demand and domestic supply for sugar are as provided in the table below (assume continuous, linear domestic demand and supply curves which include the following data points for sugar): | Price ($ per Quantity Demanded Domestically Quantity Supplied Domestically...
Suppose a country was looking to replicate the results (quantity of imports) from question 7d (The following equations represent a small country's home supply and demand curves for widgets: S = 200 + 2P and D = 1,000 – 2P. <7d> Suppose the Supply curve is now S = 0 + 2P, the world price after opening up to trade is 200 and the demand curve remains the same. If the country subsequently imposes a 20% tariff, calculate the change...
Price of almonds (dollars per ton) S A Price floor P В C Р. E G Quantity of almonds (tons) Figure 4-6 shows the demand and supply curves for the almond market. The government believes that the equilibrium pr is too low and tries to help almond growers by setting a price floor at P 5) Refer to Figure 4-6. What area represents the portion of consumer surplus that has been transferred to producer surplus as a result of the...
Consider a model world consisting of two countries: A and B. The countries trade some e good in the international market. The respective suppy and demand curves of the wP and are described by - 480-12P and Q 280+8P(for country Ay lar necessary either work B92+ 6P (for country B). Please answer the following questions; wheren with fractions or round to the fourth decimal place trade some generic (a) In the absence of international trade, find domestic equilibria in the...
(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...
In Exercise 4 in Chapter 2, we examined a vegetable fiber traded in a competitive world market and imported into the United States at a world price of $4.00 per pound. U.S. domestic supply and demand for various price levels are shown in the following table. U.S. Supply U.S. Demand Price (million pounds) (million pounds) 2.00 4.00 8.00 22 8.00 10.00 10 1 0 12.00 12 4 18 The demand curve is given by 04. Qp = 40.00 -3.00P. OB....
h) If the price of tomatoes increase how would you explain the change in demand for avocados with substitution and income effects? Explain in detail. 1) What is income elasticity of demand for avocado at the market clearing equilibrium price and quantity in Brooklyn avocado market? Explain. Also, based on your results explain what type of good tomatoes must be in Brooklyn. 1) Explain why as the price of avocado increases the demand for avocados becomes relatively more elastic? Also...
30 25 20 Pwfl+t) 15 Pw 10 0 10 20 30 40 50 60 70 80 90 100 Q -jets Suppose the world market price of jets is P 10 but that economic policy initia What is the closed economy market equilibrium price and quantity of of jets? P all jet If imports are allowed at Pr = 10 , how many jets would be imported? o and domestic produced supply indicate domestic demand on the horizontal axis on the...
Need help with this homework. Assume that Sapello is a labor abundant country and that Pojoaque is capital abundant. Further assume chili production is labor intensive and wine production is capital intensive. Note: Please show your work. Partial credit will be given, but I need to see your work. 1. (2 points) Suppose Sapello is considering a tariff on wine from Pojoaque. Using a supply and demand graph show the welfare effects of a tariff in Sapello on wine from...