EconomicsAniva and Kartaly are small countries that protect their economic growth from rapidly advancing globalization by limiting the import of rugs to 40million. To this end, each country imposes a different type of trade barrier when the world price (Pw) is $3,000. In Aniva, the government decides toimpose a tariff of $1,000 per rug; in Kartaly, the government implements a quota of 40 million rugs.Assume that Aniva and Kartaly have identical domestic demand (Do) and supply (S) curves for rugs as shown on the following graph. Under theseconditions, the price of rugs is $4,000 per rug in each country.10000PRICE (Dollars per rug)900080007000-6000+50004000300020001000O0PDoTrue10False20D₁30 40 50 60 70QUANTITY (Millions of rugs)CountryAniva (tariff $1,000)Kartaly (quota 40 million rugs)Assuming Aniva keeps the tariff at $1,000 per rug, complete the first row of the following table by calculating each of the values given this increase indemand. Assuming Kartaly maintains a quota of 40 million rugs, complete the second row of the table by calculating each of the values given thisincrease in demand.Price(Dollars)80 90 100(?True or False: The increase in demand helps domestic producers but hurts domestic consumers In Kartaly.Which of the following explain why a tariff is aQuantity Demanded at New Price(Millions of rugs)Imports(Millions of rugs)restrictive trade barrier than an equivalent quota. Check all that apply.A tariff prevents domestic consumers from buying imports even if they are willing to pay a higher price.An exporter can try to cut costs or slash profit margins.Importers who are able to pay the tariff duty will get the product.

World price = $3000 In Aviva , tariff =$1000 so price = world price + T = $4000 price = $4000 At P…

Answered: Aniva (tariff $1,000) mly (quota 40…

Aniva (tariff $1,000) mly (quota 40 million rugs) or False: The increase in demand helps domestic producers but hurts domestic consumers in Kartaly. O True False

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

4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for soybeans in Zambia. The world price (Pw) of soybeans is $520 per ton and is represented by the horizontal black line. Throughout the question, assume that the amount demanded by any one country does not affect the world price of soybeans and that there are no transportation or transaction costs associated with international trade in soybeans. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. 920 Domestic Demand Domestic Supply 870 820 770 720 670 620 570 520 470 420 80 100 120 140 QUANTITY (Tons of soybeans) 20 40 60 160 180 200 If Zambia is open to international trade in soybeans without any restrictions, it will import tons of soybeans. Suppose the Zambian government wants to reduce imports to exactly 40 tons of soybeans to help domestic producers. A tariff of S per ton will achieve this. A…
Figure 7-1 Price $54 30 24 0 R S V W X Y % Q₁ Q₂ US Supply O Q0 O Q1 World price Quantity of leather footwear Figure 7-1 shows the U.S. demand and supply for leather footwear. Q2 US Demand Refer to Figure 7-1. Suppose the government allows imports of leather footwear into the United States. What will be the quantity of imports? OQ2Q0
Suppose that the world price of baseball caps is €1 and there are no import restrictions on this product. Assume that Spanish consumers are indifferent between domestic and imported baseball caps. a. What quantity of baseball caps will domestic suppliers supply to domestic consumers ?__________thousands
Price per Saddle Domeslic Supply A P2 Tariff World Price C P1 Domestic Demand Q1 Q2 Quantity of Saddles Q3 Q4 With the tariff in place, the new quantity of imports equals Q4 - Q1 Q2 Q3 O Q3- Q2
Figure 9-2 Price (dollars per pound) $1.00 0.60 0 G C ان H A D 1 9 15 9 million pounds of rice. O 15 million pounds of rice. B 31 million pounds of rice. E 42 million pounds of rice. J US Supply 31 F K 42 Suppose the U.S. government imposes a $0.40 per pound tariff on rice imports. Figure 9-2 shows the impact of this tariff. Pw World price (Pw) Refer to Figure 9-2. Without the tariff in place, the United States produces + tariff US Demand Quantity of rice (millions of pounds)
How does the imposition of an import tariff by a country affect its domestic market for the imported goods? A. It increases the domestic supply, leading. to lower prices. B. It decreases the domestic supply, leading to higher prices. C. It increases the domestic demand, leading to higher prices. D. It decreases the domestic demand, leading to lower prices.
1
The following is not the cost of the tariff a. area a b. area b c. area d d. area a+b+c+d
1. What do the welfare effects of an import quota differ from those of import tariff?
Assuming the market outcome, and a world price of $6.50 calculate the following: Price Qddom Qsdom Imports or exports
PRICE (Dollars per tonne) 1160 Domestic Demand 1110 1060 1010 960 910 860 810 760 710 660 0 20 40 60 80 100 120 140 160 180 QUANTITY (Tonnes of oranges) and is represented by the horizontal black line. satisfy domestic demand as much as possible before any exporting or importing takes place. price of oranges and that there are no transportation or transaction costs associated Domestic Supply A tariff set at this level would raise $ PW 200 If Zambia is open to international trade in oranges without any restrictions, it will import Suppose the Zambian government wants to reduce imports to exactly 40 tonnes of oranges to help domestic producers. A tariff of $ tonnes of oranges. in revenue for the Zambian government. per tonne will achieve this. Q Search this course
00 7 F. PRICE (Dollars per ton) 4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for soybeans in Honduras. The world price (Pw) of soybeans is $530 per ton and is represented by the horizontal black line. Throughout the question, assume that the amount demanded by any one country does not affect the world price of soybeans and that there are no transportation or transaction costs associated with international trade in soybeans. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. 2. Domestic Demand Domestic Supply 770 740 710 680 650 620 06 P, 530 MacBook Pro Search or type URL 4. 51 9.