A particular metal is traded in a highly competitive world market at a world price of $9.3 per ounce. Unlimited quantities are available for import into Canada at this price. The supply of this metal from domestic Canadian producers can be represented by Qs = 222 + 58P and the demand for the metal in Canada is Qd = 2044 -79P, where Qs and %3D Qd are in units of million ounces and P is the price per ounce. The Canadian government plans to impose an import quota of 240 million ounces per year. What is the net domestic loss to the Canadian economy as a result of the import quota? Answer: $ million (DO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL ANSWER. ENTER YOUR RESPONSE ROUNDED TO2 DECIMAL PLACES, AND NO SEPARTOR FOR THOUSANDS.)

A particular metal is traded in a highly competitive world market at a world price of $9.3 per ounce. Unlimited quantities are available for import into Canada at this price. The supply of this metal from domestic Canadian producers can be represented by Qs = 222 + 58P and the demand for the metal in Canada is Qd = 2044 -79P, where Qs and %3D Qd are in units of million ounces and P is the price per ounce. The Canadian government plans to impose an import quota of 240 million ounces per year. What is the net domestic loss to the Canadian economy as a result of the import quota? Answer: $ million (DO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL ANSWER. ENTER YOUR RESPONSE ROUNDED TO2 DECIMAL PLACES, AND NO SEPARTOR FOR THOUSANDS.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Worldwide quarterly sales of a brand of cell phones were approximately q = −p + 156 million phones when the wholesale price was $p. (a) If the cellphone company was prepared to supply q = 4p − 384 million phones per quarter at a wholesale price of $p, what would have been the equilibrium price? $ (b) The actual wholesale price was $103 in the fourth quarter of 2004. Estimate the projected shortage or surplus at that price. There is an estimated ______ of million phones.
a) What are the criticisms advanced on Jacob Viner's analysis? b) According to this model, if the import price of a manufactured product increases because of a Common External Tariff (CET) of the Customs Union, what are the price and volume effects on domestic consumers? and foreign producers?
The US demand curve for transporting freight by truck is а° - 580B - 60в "Р, where B denotes billion. Here, P is the price to transport a standard shipping container one mile, and quantity Q is the number of shipping-container-miles transported in a year. The marginal cost of transport is $1/mile (i.e., fuel and driver costs). Each truck can drive up to a maximum of 100,000 miles/year. Assume each truck carries one shipping container. The annual fixed cost of operating a truck is $200,000. Consequently, the average cost of a truck that drives q miles a year is ($200,000/q) +$1. All trucks have the same costs. There are no barriers to setting up a new trucking firm and/or acquiring additional trucks, and there are large numbers of people capable of running a trucking firm. Part (a) Sketch average and marginal costs for a truck, as a function of miles driven. Part (b) (i) (ii) (ii) (iv) (v) What is the price-per-mile of transporting freight by truck? How many miles does the combined US…
An increase in the demand for US goods imported into South africa will have the following impact in the South African market: The volume of exports will increase. True False
You own Earthworm Excavators. Your company is the sole manufacturer of super-sized excavators that are used in the world’s largest mining operations. The U.S. has recently lifted export restrictions on the product you sell, so you can now sell your equipment in the world market along with sales in the domestic market. You hire an economist to estimate the following (inverse) demand curves per year for these distinct markets: Domestic market : Pd = $1200 - $10QdForeign market : Pf = $600 - $5Qf where P refers to prices charged in each market in thousands of dollars and Q refers to the annual quantities demanded in each market. The total costs (in thousands of dollars) of your annual operation are given by: TC = 900 + 200Q a. If you decide to offer you machines at a single price to all potential buyers, at what price will the foreign buyers be priced out of the market?b. What is the market demand function if you decide to offer the machines to all potential buyers at a single…
The total/aggregate market demand for rubber erasers can be segmented into two components. The first component is the demand for rubber erasers by art students. This demand is given by Qa=10,000-250P. The second component is the demand for rubber erasers by all other purchasers. This demand is given by Qo=15000-500P. a) Draw the demand curve for art students, the demand curve for other purchasers and the aggregate demand curve b) Derive the algebraic expression for the aggregate demand curve. c) If the equilibrium price is $20, determine the consumer surplus for art students.
The domestic demand and supply for sugar are, respectively, Qd = 60,000 − 400P and QSD = 5,000 + 200P. The foreign supply is QSF = 40,000 + 200P. What is the total supply of sugar in the domestic market? Q = 45,000 + 400P. Q = 5,000 + 200P. Q = 35,000 + 200P. Q = 55,000 + 400P.
LA Qi Quantity Kidneys for Transplants If a free market were allowed in the transplanted kidney market, then the equilibrium price would be P2. The number of kidneys transplanted would increase by compared to the number transplanted at a price ceiling of P= $0. Price (dollars) P₁ 0 (Q3 - Q1) O(Q3-Q₂) (Q2-Q₁) Q2
Suppose the makers of PEZ candies have decided to test market a new dispenser with red, white, and blue candies. The PREZ dispenser (as it will be called in 2024) bearing the likeness of each political party's presidential candy-date is estimated to have a market demand given by: 5Q = 3000 - 200p where p is expressed in dollars per dispenser and Q is expressed in thousands of dispensers sold per week. a. If p= $6 per PREZ dispenser, how many PREZ dispensers will be sold that week? Less than a thousand? b. If p = $6 per PREZ dispenser, what will be the price elasticity of demand? PLEZ show your work. c. If the objective is to maximize revenue, how much would you recommend the company charge per PREZ dispenser?
Any help with past paper is much appreciated
Export subsidies, such as for aircraft producers, can in theory increase domestic welfare when firms have pricing power or returns to scales are present. True False
A large enough production subsidy can turn an imported product into an exportable product. A) false B) true