(a) Boreland and Pipeland are two countries producing toycars, having the following demand and supply conditions : Boreland: DD: Q_(d)=10-2P SS:Q_(5)=2+2P Pipeland: DD: Q_(d)=8-2P SS: Q_(5)=4+2P (i) Given this information, what will be the world equilibrium price and quantity traded? (ii) The fixed cost of setting up a production chain of toycars by the exporting country in the importing country is $2.5, and the cost of transportation is $0.25 per toycar exported. Which route would be preferred by the exporting country: producing toycars abroad or exporting the same from home? (iii) In the light of the above answers, explain the tradeoff faced by the exporting country. PLease answer all three (i),(ii)and(iii)

Q: QUESTION 6 The following figure depicts the supply and demand schedules of calculators for Greece, a…

A: We have given that  France can supply calculators to Greece at $30 per unit while Germany can supply…

Q: The following graph shows the domestic market for steel in the United States, where Sp is the…

A: A tariff is a duty charged on imports of goods. A country imports a great deal of goods from other…

Q: The following graph shows the domestic supply of and demand for wheat in Kenya. Kenya is open to…

A: The objective of the question is to determine the tariff per bushel that the Kenyan government needs…

Q: Home's import demand curve (shown on the graph to the right) for wheat is Quo 80-40P. Foreign's…

A: Global economic interdependence is strengthened by international trade, cultivating shared…

Q: The following graph shows the same domestic supply and demand curves for limes in South Africa. Now,…

A: The equilibrium price and equilibrium quantity of a good sold in the market are determined by the…

Q: Suppose the market for a certain manufactured product in Country 1 is given by the following…

A: Demand is defined as the desire backed by the ability and willingness of an individual to buy goods.…

Q: Suppose the demand and the supply for lumber (harvested wood processed in a sawmill) used for…

A: Demand curve is the downward sloping curve.  Supply curve is the upward sloping curve.  Equilibrium…

Q: The following graph shows the domestic demand for and supply of lemons in Panama. The world price…

A: International trade:International trade means buying and selling goods and services from outside the…

Q: PRICE (Dollars per ton) The following graph shows the domestic demand for and supply of oranges in…

A: In an open economy, the consumers and producers have incentive to earn more from making the economic…

Q: if u.s. quotas on imported goods were eliminated: a) the supply of sugar in the U.S. would shift to…

A: We have show that  Quotas are set so that the prices of imported goods increase for consumers. So…

Q: The demand for cameras in a certain country is given by D=8000−30P, where P is the price of a…

A: The equilibrium is established where the demand and supply are equal.

Q: Suppose firms incur transportation costs to sell their product abroad. How do transportation costs…

A: Transportation costs are the prices likely to be changed abroad and how to make up a larger share in…

Q: Now suppose other countries produce cassava and Côte d'Ivoire can import cassava at the world price…

A: Equilibrium is where the demand curve intersects the supply curve.  The import is the purchase of…

Q: a. If there is no tariff, how much do consumers pay for a pound of coffee? What is the quantity…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The market for pencils has a domestic demand equation P=20−0.5Q�=20−0.5�, and a domestic supply…

A: The objective of this question is to find the equilibrium price and quantity in the market for…

Q: a) Which areas are in the graph are deducted from the consumer surplus as a result of tariff?…

A: Import is the purchase of goods and services by the home country from the foreign countries. Import…

Q: Acimera is a small country currently importing goods A, B and C. Each unit of good A produced…

A: Given; The country is importing three goods:- A, B, and C The current world prices are:- P(A)=800…

Q: 1.16 The demand for cars in a certain country is given by: D = 15,000 - 0.3P, where P is the price…

A: A country becomes an importer when world price of the good is lower than domestic equilibrium price.

Q: If the world price the price you can get for a box of your contact lenses is greater than the…

A: The domestic price is determined by domestic demand and domestic supply, which is less than the…

Q: The General Agreement on Trade in Services (GATS) defines trade in service s the supply of a service…

A: The general agreement on trade in service defines any service in any sector, excepting service in…

Q: Now instead of a tariff the government decides to restrict the total quantity of sugar that is…

A: Domestic demand for sugar is given by: Q D = 8 – P World price of sugar is $2 Since, the government…

Q: Country C imports 80,000 metric tons of steel from Country U and produces domestically 80,000 metric…

A:

Q: Consider the information in the file named HW5 - Green Paradox. Concentrate on the scenario called…

A: Explanation:The initial equilibrium price of $50 and equilibrium quantity of 100 units can be…

Q: The following graph shows the domestic supply of and demand for maize in Guatemala. The world price…

A: Domestic demand is the interest for labor and products addressed by all occupant units to fulfill…

Q: a) What will be the price at which charcoal is traded in the domestic market? What will be the…

A: The price in domestic market is determined through the interaction of demand and supply in case of…