If the world price of a good exceeds the domestic price of the good, will the...
If the world price of a good exceeds the domestic price of the good, will the country export or import the good. In this scenario who gain from free trade: Domestic consumers or Domestic producers? Explain. use text and not papers or toilet paper
Homework Answers
If the world price is greater than domestic price then the country will become exporter, because at the relatively high world price there will be excess supply or deficit demand.Producers will gain from free trade because their producer surplus rises by supplying more at a higher price.
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If the world price of a good exceeds the domestic price of the
good, will the...
Q. 1. Suppose both supply and demand in a market are relatively inelastic. Will a tax...
Q. 1. Suppose both supply and demand in a market are relatively inelastic. Will a tax placed on the product in market generate a relatively large or small deadweight loss? Why? Q. 2. If the world price of a good exceeds the domestic price of the good, will the country export or import the good. In this scenario who gain from free trade: Domestic consumers or Domestic producers? Explain.
Using the graph below, answer the following questions about hammers. Price Domestic Supply $22 14- World...
Using the graph below, answer the following questions about hammers. Price Domestic Supply $22 14- World Price 10 Domest Demand 50 90 -135-Quantity a. Once trade is allowed does this country import or export b. How much do they import or export c. Does this trade benefit domestic producers or consun Overall, is trade good for this country? Explain how we measure this
QUESTION 16 If the world price of cotton is less that the price that would occur...
QUESTION 16 If the world price of cotton is less that the price that would occur domestically without trade, then a country will decrease its demand for cotton and increase its demand for cotton substitutes increase its demand for cotton and decrease its demand for cotton substitutes import cotton export cotton QUESTION 17 A trade quota is a restriction on the quantity of goods that can be imported a tax on imports a tax on exports the restriction of trade...
Argentina is a ‘small country’ in the world car market. A) Assume that world car price...
Argentina is a ‘small country’ in the world car market. A) Assume that world car price is below the price that prevails in India. Does Argentina gain by engaging in international trade in car? Does it export or import? Draw a diagram to show the gains (or losses) from trade. Who gains and who loses? b) Suppose that a technological advance increases the domestic supply of cars in Argentina. What effect does this advance have on the domestic price of...
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 - 4...
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...
Steel Industry Consider a small country that exports steel. Suppose the following graph depicts the domestic demand and supply for steel in this country. One of the two price lines represents the world price of steel.
Consider a small country that exports steel. Suppose the following graph depicts the domestic demand and supply for steel in this country. One of the two price lines represents the world price of steel.Use the following graph to help you answer the questions below. You will not be graded on any changes made to this graph.Because this country exports steel, the world price is represented byP .Suppose that a “pro-trade” government decides to subsidize the export of steel by paying...
4. Consider a large country importing a good from the world market. The government of this country decides to impos...
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...
7. A small country imports sugar. With free trade at the world price of $0.10 per...
7. A small country imports sugar. With free trade at the world
price of $0.10 per pound, the country’s national market is:
The country’s government now decides to impose a quota that
limits sugar imports to 240 million pounds per year. With the
import quota in effect, the domestic price rises to $0.12 per
pound, and domestic production increases to 160 million pounds per
year. The government auctions the rights to import the 240 million
pounds.
Calculate how much domestic...
If the world price of rice is lower than the domestic rice price before trade, Korea...
If the world price of rice is lower than the domestic rice price before trade, Korea will be an importer of rice when trade is permitted. Due to trade, domestic producers of rice in Korea are worse off, and domestic consumers of rice in Korea are better off. Trade raises the economic well-being of the nation as a whole because the gains of consumers exceed the losses of producers. Is this true or false? Please indicate reason to your answer.
Can someone help me answer these questions and explain why? I haven't had much experience with...
Can someone help me answer these questions and explain why? I
haven't had much experience with graphs like these and could really
use some help understanding.
The countries of Swansea and Bristol have domestic supply and
demand curves for wheat as shown in the graphs below (where both
price axes are in the same units). Suppose the world price is
between the domestic no trade prices of the two countries.
2. [7½ points] Consider what happens in Swansea as it...
Using the graph below, answer the following questions about hammers. Price Domestic Supply $22 14- World Price 10 Domest Demand 50 90 -135-Quantity a. Once trade is allowed does this country import or export b. How much do they import or export c. Does this trade benefit domestic producers or consun Overall, is trade good for this country? Explain how we measure this
QUESTION 16 If the world price of cotton is less that the price that would occur domestically without trade, then a country will decrease its demand for cotton and increase its demand for cotton substitutes increase its demand for cotton and decrease its demand for cotton substitutes import cotton export cotton QUESTION 17 A trade quota is a restriction on the quantity of goods that can be imported a tax on imports a tax on exports the restriction of trade...
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...
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...
7. A small country imports sugar. With free trade at the world
price of $0.10 per pound, the country’s national market is:
The country’s government now decides to impose a quota that
limits sugar imports to 240 million pounds per year. With the
import quota in effect, the domestic price rises to $0.12 per
pound, and domestic production increases to 160 million pounds per
year. The government auctions the rights to import the 240 million
pounds.
Calculate how much domestic...
Can someone help me answer these questions and explain why? I
haven't had much experience with graphs like these and could really
use some help understanding.
The countries of Swansea and Bristol have domestic supply and
demand curves for wheat as shown in the graphs below (where both
price axes are in the same units). Suppose the world price is
between the domestic no trade prices of the two countries.
2. [7½ points] Consider what happens in Swansea as it...
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