1. Suppose that the world price for a good is 50, and the domestic demand andsupply curves are given by the following equations:=QP 350 0.2PDQS = 10 + 6PSa) How much is consumed? How much is produced domestically? What are thevalues of producer and consumer surplus?b) If a 5% import tariff is imposed, by how much do consumption and domesticproduction 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 agraphical representation.

a) Initial Scenario:Consumption and Production: Initially, at the world price of $50, 250 units are…

Answered: 1. Suppose that the world price for a…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

See similar textbooks

Similar questions

The valuable international business concept which shifts our attention “from recognizing the differences in competitive advantage to answering, which firms from which nations gain advantage in the industry", does not include the following among its key determinants: Factor conditions O Related and supporting industries Portfolio investment O Demand conditions
Aggregate demand, aggregate supply, and the Philips curve
7
2
South Africa produces textiles. As a trade policy to enhance exports of textiles, the South African government introduces a subsidy on textiles. The autarky price of a ton of textiles is R40, and domestic production and consumption of textiles is 60 tons. The free trade price of textiles is R45. Represent this scenario in a well-drawn diagram and explain with the aid of the diagram, the impact of a R10 subsidy on each unit of textile
Q1 (b) The Philips curve claims that with economic growth comes inflation, but only in the short run, which in turn should lead to more jobs and less unemployment. Write and apply the concept of Philips curve in the context of developing countries.
Asume you are a Mexican importer who must pay 500.000 euros at the end of 90 days when you receive 2.000 cases of French wine at your warehouse in Mexico City Suppose you have not covered this transaction in the forward market in which of the following cases will you suffer the largest loss. A) The peso (spot) initially appreciates by 3 percent, and then depreciates by 2:9 percent.B) The peso (spot) initially depreciates by 3 percent, and then appreciate es by 2 percentC) The peso (spot) initially appreciate by 2 percent, and then depreciates by 1 percent.D) The peso (spot) exchange rate value vis-a-vs the euro does not change
1.Indicate whether the supply or Demand curve would shift to the right, shift to the left or movement along the demand/supply curve under each of the following instances An announcement by local supermarkets on radios and television channels that more companies and individuals with pick up cars have come on board to offer delivery services of groceries to customers during the rock down period. What would happen to the supply of delivery transport service? The Namibian government decides to stop subsidising the City of Windhoek, public transport division. what would happen to the supply of public transport? The government of Namibia decides to increase the income of all the civil servant by 30% as many demanded the need to buy their own vehicle. what would happen to the demand curve for vehicles?
1. If planned investment (I) rises by 20 initially and continues at this higher level, then increasing output by 20 will not restore equilibrium. Explain the reason?
If an industry is characterized by low entry barriers, strong supplier and buyer positions, high threat of substitutes and intense competitive rivalry, then the profit potential of the industry is likely to be:
Many would argue that the TV manufacturing business has become largely a commodity business,and competition is based on price, with many good brands offered at low prices at retailers such asWalmart. The manufacturers of TVs are said to have a barrier to entry from other potential competitors because the existing manufacturers (Phillips, Sony, Samsung, etc.) have spent huge sumsto develop their brands and manufacturing facilities. In recent years, there has been a large growthin the number of contract manufacturers (such as Flextronics) that manufacture TVs for the largefirms. How does this affect the competition within the industry? Are there now new opportunities forsmaller manufacturers of TVs?
XYZ Steel company Ramesh Bhai started the XYZ steel industry in 1947. It was created by acquiring an English steel manufacturer named Gerrard steels, preparing to leave India and return to Britain. The fact that there was only one major competitor helped XYZ grow very fast. Between 1947 and 1957, they grew by about ten times. During these years, the company made only raw carbon steel due to a lack of technological know-how to make value-added products. In 1957 they tied up with a German firm, Gunther steel, to make stainless steel, vastly increasing their market scope. In 1960 XYZ created a new entity by the name of 'Rashi' ores. The new company was into mining iron ore which was critical for the success of the parent organization. Rashi ore helped ensure a steady and cheap supply of ore to XYZ, vastly improving its profitability and output volumes. Such synergy prompted XYZ to expand into U.S. and Europe to sell raw carbon steel, which had massive demand due to their…

SEE MORE QUESTIONS

Recommended textbooks for you

Understanding Business

Management

ISBN:

9781259929434

Author:

William Nickels

Publisher:

McGraw-Hill Education

Management (14th Edition)

Management

ISBN:

9780134527604

Author:

Stephen P. Robbins, Mary A. Coulter

Publisher:

PEARSON

Spreadsheet Modeling & Decision Analysis: A Pract…

Management

ISBN:

9781305947412

Author:

Cliff Ragsdale

Publisher:

Cengage Learning

Understanding Business

Management

ISBN:

9781259929434

Author:

William Nickels

Publisher:

McGraw-Hill Education

Management (14th Edition)

Management

ISBN:

9780134527604

Author:

Stephen P. Robbins, Mary A. Coulter

Publisher:

PEARSON

Spreadsheet Modeling & Decision Analysis: A Pract…

Management

ISBN:

9781305947412

Author:

Cliff Ragsdale

Publisher:

Cengage Learning

Management Information Systems: Managing The Digi…

Management

ISBN:

9780135191798

Author:

Kenneth C. Laudon, Jane P. Laudon

Publisher:

PEARSON

Business Essentials (12th Edition) (What's New in…

Management

ISBN:

9780134728391

Author:

Ronald J. Ebert, Ricky W. Griffin

Publisher:

PEARSON

Fundamentals of Management (10th Edition)

Management

ISBN:

9780134237473

Author:

Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo

Publisher:

PEARSON

SEE MORE TEXTBOOKS