1. Suppose that the world price for a good is 50, and the domestic demand and supply curves are given by the following equations: QD=350-0.2PD QS = 10 + 6PS a) How much is consumed? How much is produced domestically? What are the values of producer and consumer surplus? b) If a 5% import tariff is imposed, by how much do consumption and domestic production change? What is the change in consumer and producer surplus? How much revenue does the government earn from the tariff? c) What is the deadweight loss of the tariff? Show your results through a graphical representation.

33. a) At $800 price, how many units of good X will the domestic consumers purchase from *domestic suppliers*? ___________ units.  b) At $800 price, how many units of good X will have to be imported from abroad? _________ units.  c) At $800 price what is government's tax revenue from tariff on good X imported? $________________.  d) With no tariff, how many units of good X can domestic suppliers supply? ___________ units e) With no tariff, how many units of good X will the domestic consumers demand?_______________ units.

1. Given below are two groups’ (consumers, c, and a special interest group, i) true demands concerning a tariff on snack foods. Demand against (consumers): wtp($) = 80 + 2t Demand for (special interest): wtp($) = 50 - t Where t is the tariff rate. a. Graph the demand curves and explain how much tariff there will be if there were no free riding and all preferences were fully revealed. b. Now assume that “free riding” plagues the consumer group so that their revealed willingness to pay is given by: wtp($) = 30 + t . What are some causes of the “free riding”? Why is this not likely to happen to the producer group? c. Now what will be the equilibrium tariff rate? Graph this scenario in the same graph. d. Relate the outcome to a partial equilibrium tariff graph.

If the United States is currently importing 14 million barrels per day at a world price of $4.00 per unit (the entire amount consumed), what is the effect on imports of a tax equal to $4.00 per unit? 1.) Using the line drawing tool, help determine the quantity of U.S. crude oil imports after the $4.00 per-unit tax by drawing a horizontal line at the price paid by U.S. consumers. Label this line + Tax'. 2.) Using the point drawing tool, determine quantity demanded at the price paid by U.S. consumers after the imposition of the import tax. Label this line 'Pop'. 3.) Using the point drawing tool, determine quantity supplied at the price paid by U.S. consumers after the imposition of the import tax. Label this line "Pas". Carefully follow the instructions above and only draw the required objects. The amount of imports after the $4.00 per-unit tax is million barrels per day. Before the tax, domestic producers supplied 0 barrels of crude oil. They now supply million barrels Price per barrel…

1) Assume that the domestic supply and demand for a good are given by the following equations. Q = 500 – 20 P   Q = 80 + 10 P   a) If the world price is $10 what is the free trade level of imports? Calculate the net welfare effects of a quota of 60 units. (Quota rent goes to foreign suppliers ( VERS) . Use also graph to show the effects of this quota. b) If %30 tariff imposed on the world price(10$) , what will be net welfare effects? Compare this welfare effect  with the one in (a) and comment. Use a  new graph to show the effects.

2. Uganda is a small of Uganda country. The government wants to protect domestic producers of rice by imposing a quota, an ad valorem tariff or an equivalent specific tariff. The three trade barriers would be equivalent in the sense that either one will initially limit imports to a given amount. Once either of these measures is imposed, the government will not switch to a different measure or change its magnitude. Suppose the world supply of rice (relative to the world demand for rice) is expected to increase in the future. You are a lobbyist for producers of rice in Uganda and you only care about their interests. Which trade barrier would you advocate on their behalf - a quota, an ad valorem tariff, or a specific tariff? Which one would you advocate next? Explain carefully using a numerical example. (Feel free to use a graph as well if you want.) (Consider ONLY the interests of PRODUCERS of rice in Uganda.)

Suppose that Estonia, which is a"small economy, and it can import plastic chairs at a price of 20 per unit The domestic supply curve of plastic chairs is the following: S=40+10P And the demand curve in Estonia for plastic chairs is:   D=800-5P In addition, each unit of plastic chair production yields a marginal social benefit of 10.   a) Calculate the total effect on welfare of a tariff of 15 per unit levied on imports.     Only typed answer

Explain how a subsidy on agricultural goods like sugar adversely affects the income of foreign producers of imported sugar.

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3. A local economy's market demand for drones is given by Q® = 24 - 4P while supply is given by Q5 = 8P. Assume that domestic and world economic conditions were such thạt the local economy started exporting drones. What is the effect of drone exports on local economy's produćer surplus, consumer surplus and total surplus? Suppose instead that domestic and world economic conditions change such that it makes more sense for the local economy to start importing drones. What is the effect of drone imports on the local coconomy's producer surplus, consumer surplus and total surplus?