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$255 Pw 30 s070 Use the image above for the following questions. (Yes, I know my graph is terrible.) In the graph "Pw" is the world price, meaning the price that it is being sold for across the world. "SD" is the domestic supply, meaning the supply/production of the product within the country. (Need help on these? Video explanation: https://youtu.be/iBMwb3TvkVY ) 9) If we do not consider the world price, what is the normal PE and EQ in this graph? 10) Still, if we do not consider the world price and just look at this graph in equilibrium, what area represents the consumer surplus? What area represents the producer surplus? 11) Now, let's say that this country wants to trade internationally and can import some of this product from other countries for $25 (as shown on the graph). What is the area of the consumer surplus now? So what was the difference between this answer and your answer on #9?

$255 Pw 30 s070 Use the image above for the following questions. (Yes, I know my graph is terrible.) In the graph "Pw" is the world price, meaning the price that it is being sold for across the world. "SD" is the domestic supply, meaning the supply/production of the product within the country. (Need help on these? Video explanation: https://youtu.be/iBMwb3TvkVY ) 9) If we do not consider the world price, what is the normal PE and EQ in this graph? 10) Still, if we do not consider the world price and just look at this graph in equilibrium, what area represents the consumer surplus? What area represents the producer surplus? 11) Now, let's say that this country wants to trade internationally and can import some of this product from other countries for $25 (as shown on the graph). What is the area of the consumer surplus now? So what was the difference between this answer and your answer on #9?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Questions 9-11 please
$2575 Pw 30 s070 Use the image above for the following questions. (Yes, I know my graph is terrible.) In the graph “Pw" is the world price, meaning the price that it is being sold for across the world. "SD" is the domestic supply, meaning the supply/production of the product within the country. (Need help on these? Video explanation: https://youtu.be/iBMwb3TvkVY ) 9) If we do not consider the world price, what is the normal PE and EQ in this graph? 10) Still, if we do not consider the world price and just look at this graph in equilibrium, what area represents the consumer surplus? What area represents the producer surplus? 11) Now, let's say that this country wants to trade internationally and can import some of this product from other countries for $25 (as shown on the graph). What is the area of the consumer surplus now? So what was the difference between this answer and your answer on #9? 12) What is the producer surplus after the trade? 13) How much is being imported at a world price of $25? (So what's the difference between the domestic supply and demand? 14) Now, let's assume that the government implements an $8 tarrif (tax) on all imported products. What would the world price + tarrif be? Would there be more or less imported with this tax?
Transcribed Image Text:$2575 Pw 30 s070 Use the image above for the following questions. (Yes, I know my graph is terrible.) In the graph “Pw" is the world price, meaning the price that it is being sold for across the world. "SD" is the domestic supply, meaning the supply/production of the product within the country. (Need help on these? Video explanation: https://youtu.be/iBMwb3TvkVY ) 9) If we do not consider the world price, what is the normal PE and EQ in this graph? 10) Still, if we do not consider the world price and just look at this graph in equilibrium, what area represents the consumer surplus? What area represents the producer surplus? 11) Now, let's say that this country wants to trade internationally and can import some of this product from other countries for $25 (as shown on the graph). What is the area of the consumer surplus now? So what was the difference between this answer and your answer on #9? 12) What is the producer surplus after the trade? 13) How much is being imported at a world price of $25? (So what's the difference between the domestic supply and demand? 14) Now, let's assume that the government implements an $8 tarrif (tax) on all imported products. What would the world price + tarrif be? Would there be more or less imported with this tax?
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