2. Consider the following demand and supply functions for wine for Italy and Spain.D'180 – 20P'DS80 – 10PSSI-20 + 10P!-20 + 20PSa) Calulate (i) the equilibrium world price when both countries are OPEN to trade; (ii)quantity exported and imported by each country; (iii) The TOTAL welfare of theimporting country.Give exact numbers.b) The importing country introduces a tariff of €2. Calculate (i) the new price in theimporting country; (ii) the new free trade price; (iii) the Total welfare of the importingcountry; (iv) the effect on the welfare of the importing country in comparison withyour previous answer. Give exact numbers.

Hi, thanks for the question. As per the guidelines, we are allowed to attempt first three questions.…

Answered: 2. Consider the following demand and…

ENGR.ECONOMIC ANALYSIS

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Publisher:NEWNAN

Chapter1: Making Economics Decisions

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In the following diagram, Sao and D are the domestic supply and demand for a product and Poisthe world price of that produc. Sisthe product supply after an import quota is imposed. Soo Si A Pa 8 P. E Po CH15シ Xy Z Quantity Refer to the figure above to answer the following question. Assuming there is no tariff, the imposition of the import quota: will increase the revenues of foreign producers by area F+ J leads to an extra revenue to forcign producers equal to arcas G + H, which partly counteracts the loss they bear because of lower quantitics supplied will increase the revenuce of the Canadian government by areas G+H will increase the revenues of foreign producers by area E will increase the revenue of the Canadian government by areas E + F - G+H+J
Multiple choice question, Pls solve it quickly !!
A country that produces paper is a price taker in the world paper market. The world price is pw: Suppose that the industry is not polluting. onor The domestic supply curve, S, is upward sloping, but the home country can nti import as much as it wants at the world price, pw. In the free-trade equilibrium, e1, the equilibrium quantity is Q, and the equilibrium price is the world price, pw- With a ban on imports, the equilibrium is e2, quantity falls to Q2, and price rises to P2 P2 How do we know that winners from trade can compensate losers and still have enough left over to benefit themselves? mes The winners from trade can compensate the losers and still have enough left over to benefit themselves because, with free trade, O A. consumer surplus increases by more than producer surplus decreases. Q2 Q1 Q, Tons per year O B. consumer surplus increases by more than deadweight loss increases. O C. producer surplus increases by more than consumer surplus decreases. O D. producer surplus…
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The figure below shows the hypothetical domestic supply and demand for baseball caps in the country of Spain. Domestic Supply and Demand for Baseball Caps Spain 10 9. 8. 7 3 2 1 Da 10 20 30 40 50 60 70 80 90 100 Baseball caps (thousands per month) Suppose that the world price of baseball caps consumers are indifferent between domestic and imported baseball caps. €3 and there are no import restrictions on this product. Assume that Spanish Instructions: Enter your answers as whole numbers. a. What quantity of baseball caps will domestic suppliers supply to domestic consumers? thousand b. What quantity of baseball caps will be imported? thousand Now suppose a tariff of €2 is levied against each imported baseball cap. C. After the tariff is implemented, what quantity of baseball caps will domestic suppliers supply to domestic consumers? thousand d. After the tariff is implemented, what quantity of baseball caps will be imported? thousand Price (€ per cap)
Consider the market for coffee in the small, isolated country of Krakozhia. Within Krakozhia, the domestic demand for coffee is: Q = 500-2p and the domestic supply of coffee is: Q* = -150+ 3p
2. Winners and losers from free trade Consider the imaginary economy of Meekerton and the market for meekies, a hypothetical good. Without international trade the domestic price of meekies is $38. Suppose that the world price of meekies is $36. Assume that if it were to enter the international market for meekies, Meekerton is too small to influence the world price. If Meekerton decides to participate in free trade, then it will Given current economic conditions in Meekerton, complete the following table by indicating whether each of the statements is true or false. Statement meekies. Meekertonian producers were worse off without free trade than they are with it. Meekertonian consumers were better off without free trade than they are with it. True False True True or False: When a nation is too small to affect world prices, allowing free trade will sometimes decrease total surplus in that country, regardless of whether it imports or exports as a result of international trade. False
Z2
12. If the free trade price is lIP and this country imposes a trade tariff of $3, what will be the resulting net welfare loss to the economy? a)$3 b)$27 C)$13.5 d)$40.5 e)$9 13. if the free trade price is IP and this country imposes an import quota of 6 units, what will be the welfare loss to this economy? a)$3 b)$27 c)$13.5 d)$40.5 e)$18
2. Winners and losers from free trade Consider the imaginary economy of Meekerton and the market for meekies, a hypothetical good. Without international trade the domestic price of meekies is $25. Suppose that the world price of meekies is $28. Assume that if it were to enter the international market for meekies, Meekerton is too small to influence the world price. If Meekerton decides to participate in free trade, then it will export meekies. Given current economic conditions in Meekerton, complete the following table by indicating whether each of the statements is true or false. Statement Meekertonian producers were better off without free trade than they are with it. Meekertonian consumers are better off under free trade than they were before. O True o False True False True or False: When a nation is too small to affect world prices, allowing free trade will sometimes decrease total surplus in that country, regardless of whether it imports or exports as a result of international…
Solve the attachment.
Price $16 129 14 12 10 8 co 6 4 2 Sd 0 10 20 30 40 50 60 70 80 90 Quantity Dd Please refer to the graph provided, which displays the domestic supply (S) and demand (D) curves for a certain product. The world price of this product is $6. If this particular market is open to international trade, but there is a tariff of $6 per unit imposed, then the domestic producers will earn $240, the total revenue (after tariff) going to foreign producers would be $240, and the tariff revenue going to the government would be $40 $600, and there will be no imports and no tariff revenue. $120, the total revenue (after tariff) going to foreign producers would be $120, and the tariff revenue going to the government would be $80 O $400, the total revenue (after tariff) going to foreign producers would be $120, and the tariff revenue going to the government would be $40

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