When tariff is imposed, the price will be $40. At this price the quantity supplied domestically is 75 units and the quantity demanded is 125 units. So the difference of 50 units (125-75) will be imported to meet the excess demand. The answer is option (c).
Price SD $60 $45 $10 Pw+tarif Pw $30 $25 $20 Do 50 75 100 125 150...
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...
100 80- 60 40- 25 50 75 100 125 150 m/z
3. Welfare effects of a tariff In a small country Suppose Kenya is open to free trade in the world market for wheat. Because of Kenya's small size, the demand for and not affect the world price. The following graph shows the domestic wheat market In Kenya. The world price of wheat is supply of wheat in Kenya do Pw - $250 per tor. On the following graph, use the green triangle (triangle symbols) to shade the ares representing consumer...
Question 36 Figure 6-32 Price 20 ELENTEND 10 20 30 40 50 60 70 80 100 Quantity Refer to Figure 6-32. Which of following statements is true based upon the conditions in the market? a shortage will develop when a price ceiling is imposed at a price of S10. a surplus will develop when a price floor is imposed at a price of $8. a surplus will develop when a price floor is imposed at a price of $12. a...
Figure 7-11 1 Price + + S + → 25 50 75 100 125 150 175 200 Quantity 58. Refer to Figure 7-11. If the supply curve is S and the demand curve shifts from D to D', what is the increase in producer surplus due to new producers entering the market? a. $625 b. $2,500 c. $3,125 d. $5,625 Ni baada
1 Price S 25 50 75 100 125 150 195 200 Duaxti Refer to Figure 7-11. If the supply curve is S, the demand curve is D, and the equilibrium price is $100, what is the producer surplus? O $1,250. 5625 $5,000. $2,500
80 75 70 65 60 55 50 45 40 35 30 25 20 D2 S Price of TV Remote in Dollars D1 0 20 40 60 80 100 120 140 160 Quantity of TV Remotes The above graph shows the supply curve and 2 possible demand curves for a perfectly competitive, constant cost TV remote market. Assume the demand curve is initially D1 and the market is in long run equilibrium. Now assume a very popular new TV show comes...
3. Welfare effects of a tariff in a small country Suppose Bolivia is open to free trade in the world market for wheat. Because of Bolivia’s small size, the demand for and supply of wheat in Bolivia do not affect the world price. The following graph shows the domestic wheat market in Bolivia. The world price of wheat is PWPW = $250 per ton. On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer...
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...
200 175 2 150 Total Revenue Total Cost LLU 125 100 Profit Z 75 O 50 ー 25 -25 4 5 QUANTITY (Teddy bears)