Homework Answers
Consumer surplus decreases by = (20-10)*150 + 0.5(20-10)(200-150) = 1750
Producer surplus increases by = 0.5(20-8)*100 - 0.5(10-8)*50
= 550
Government revenue increases by (20-10)(150-100)= 500
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(50 points) Problem One (10 Points) Calculate change in consumer and producer surplus and government revenue due to...
Calculate change in consumer and producer surplus and government revenue imposing an $10 tariff per unit on importe...
Calculate change in consumer and producer surplus and government revenue imposing an $10 tariff per unit on imported shoes. Pw = World price Pw+T = World Price plus tariffon Price 30 Demand Supply Pw+T = 20 Pw=10 50 100 150 200
Consumer & Producer Surplus If QP = 450 - P and Q* = 2P - 150:...
Consumer & Producer Surplus If QP = 450 - P and Q* = 2P - 150: a. Solve for the market equilibrium price (P) and market equilibrium quantity (Q*). (4 points) b. Solve for consumer surplus, producer surplus and total surplus. (4 points) 2. Welfare Effects of a Per Unit Tax Given the same demand and supply equations as in question #1, suppose the government imposes a per unit tax of $15: 22 a. Solve for the new equilibrium quantity...
Question 5 Welfare for a country is equal to consumer surplus consumer surplus minus producer surplus...
Question 5 Welfare for a country is equal to consumer surplus consumer surplus minus producer surplus consumer surplus plus producer Surplus plus tariffrevenues consumer surplus plus producer Surplus minus tariff revenues Question 6 Use the graph below to answer this question: In autarky (before trade) consumer surplus is the area represented by the letter(s) (For this question and the following ones that use the same graph. Sis domestic supply. Dis domestic demand Pw is the world price is the tarif)
Based on your analysis, as a result of the tariff, new Zealand's consumer surplus (increase/decrease) by...
Based on your analysis, as a result of the tariff, new Zealand's
consumer surplus (increase/decrease) by
$______________, a producer surplus
*(increase/Decrease) by
$__________, and the government collects
$____________ in revenue. Therefore, the net
welfare effect is a (gain/loss) by
$____________.
3. Welfare effects of a tariff in a small country Suppose New Zealand is open to free trade in the world market for wheat. Because of New Zealand's small size, the demand for and supply of wheat in New Zealand...
area 3 Hopefully, you understood the material on Consumer Surplus (CS) and Producer Surplus (PS) Now...
area 3 Hopefully, you understood the material on Consumer Surplus (CS) and Producer Surplus (PS) Now let's use those concepts to quantify the economic Consequences of imposing an Import tariff price of mangos 1 Assume the graphs represent the domestic market of mangos. Determine the following: competitive market equilibrium price would = domestic market supply curve of mangos competitive equilibrium quantity of magos =_ $3/lb. 2. Now assume the world market equilibrium price of mangos = $1.50/lb. and domestic producers...
3. Welfare effects of a tariff in a small country Suppose Bolivia is open to free...
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...
This is one problem please answer the following 3. Welfare effects of a tariff in a...
This is one problem please answer the following
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 Pw - $250 per ton. On the following graph, use the green triangle...
can someone help me with this question please 2. (30 points) Suppose the world price for a good is 50 and the domes...
can someone help me with this question please
2. (30 points) Suppose the world price for a good is 50 and the domestic demand and supply curves are given by the following equations: Demand: P = 100 - 20 Supply: P = 20 + 30 How much is consumed? How much is produced at home? What are the values of consumer and producer surplus? If a tariff of $6 per unit is imposed, by how much docon change? unit is...
3. Welfare effects of a tariff In a small country Suppose Kenya is open to free...
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...
fill in the blank 1)increase/decrease 2)increase/decrease 3)gain/loss Suppose New Zealand is open to free trade in...
fill in the blank
1)increase/decrease
2)increase/decrease
3)gain/loss
Suppose New Zealand is open to free trade in the world market for wheat. Because of New Zealand's small size, the demand for and supply of wheat in New Zealand do not affect the world price. The following graph shows the domestic wheat market in New Zealand. The world price of wheat is Pw = $250 per ton. On the following graph, use the green triangle (triangle symbols) to shade the area representing...
Calculate change in consumer and producer surplus and government revenue imposing an $10 tariff per unit on imported shoes. Pw = World price Pw+T = World Price plus tariffon Price 30 Demand Supply Pw+T = 20 Pw=10 50 100 150 200
Consumer & Producer Surplus If QP = 450 - P and Q* = 2P - 150: a. Solve for the market equilibrium price (P) and market equilibrium quantity (Q*). (4 points) b. Solve for consumer surplus, producer surplus and total surplus. (4 points) 2. Welfare Effects of a Per Unit Tax Given the same demand and supply equations as in question #1, suppose the government imposes a per unit tax of $15: 22 a. Solve for the new equilibrium quantity...
Question 5 Welfare for a country is equal to consumer surplus consumer surplus minus producer surplus consumer surplus plus producer Surplus plus tariffrevenues consumer surplus plus producer Surplus minus tariff revenues Question 6 Use the graph below to answer this question: In autarky (before trade) consumer surplus is the area represented by the letter(s) (For this question and the following ones that use the same graph. Sis domestic supply. Dis domestic demand Pw is the world price is the tarif)
Based on your analysis, as a result of the tariff, new Zealand's
consumer surplus (increase/decrease) by
$______________, a producer surplus
*(increase/Decrease) by
$__________, and the government collects
$____________ in revenue. Therefore, the net
welfare effect is a (gain/loss) by
$____________.
3. Welfare effects of a tariff in a small country Suppose New Zealand is open to free trade in the world market for wheat. Because of New Zealand's small size, the demand for and supply of wheat in New Zealand...
area 3 Hopefully, you understood the material on Consumer Surplus (CS) and Producer Surplus (PS) Now let's use those concepts to quantify the economic Consequences of imposing an Import tariff price of mangos 1 Assume the graphs represent the domestic market of mangos. Determine the following: competitive market equilibrium price would = domestic market supply curve of mangos competitive equilibrium quantity of magos =_ $3/lb. 2. Now assume the world market equilibrium price of mangos = $1.50/lb. and domestic producers...
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...
This is one problem please answer the following
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 Pw - $250 per ton. On the following graph, use the green triangle...
can someone help me with this question please
2. (30 points) Suppose the world price for a good is 50 and the domestic demand and supply curves are given by the following equations: Demand: P = 100 - 20 Supply: P = 20 + 30 How much is consumed? How much is produced at home? What are the values of consumer and producer surplus? If a tariff of $6 per unit is imposed, by how much docon change? unit is...
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...
fill in the blank
1)increase/decrease
2)increase/decrease
3)gain/loss
Suppose New Zealand is open to free trade in the world market for wheat. Because of New Zealand's small size, the demand for and supply of wheat in New Zealand do not affect the world price. The following graph shows the domestic wheat market in New Zealand. The world price of wheat is Pw = $250 per ton. On the following graph, use the green triangle (triangle symbols) to shade the area representing...
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