DomesticDemand18016014012010080DomesticPrice ($)20406080100120Supply306090-120150180Assume instead that Economica decides to place a quota of 752.units on foreign imports instead of a tariff.Draw the import demand and foreign export supply curve in thisa.case.Calculate the domestic priceThe effect of the quota on consumer surplusb.c.d.The deadweight loss of the quotaThe quota rentUnder what circumstances will the government receive the quotae.f.rentcircumstances will foreigners receive the quotag.rent?Under what

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Domestic Domestic Price ($) 20 40 60 Demand 180 160 140 120 100 80 Supply 30 60 90- 120 150 180 80 100 120 2. Assume instead that Economica decides to place a quota of 75 units on foreign imports instead of a tariff. a. Draw the import demand and foreign export supply curve in this case. Calculate the domestic price c. The effect of the quota on consumer surplus d. b. The deadweight loss of the quota e. The quota rent Under what circumstances will the government receive the quota cent Under what circumstances will foreigners receive the quota ent?

Domestic Domestic Price ($) 20 40 60 Demand 180 160 140 120 100 80 Supply 30 60 90- 120 150 180 80 100 120 2. Assume instead that Economica decides to place a quota of 75 units on foreign imports instead of a tariff. a. Draw the import demand and foreign export supply curve in this case. Calculate the domestic price c. The effect of the quota on consumer surplus d. b. The deadweight loss of the quota e. The quota rent Under what circumstances will the government receive the quota cent Under what circumstances will foreigners receive the quota ent?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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PRICE 212900 11 8 76 5 4 3 2 Domestic Demand G D B E Domestic Supply World Price+Tarif World Price 1 2 3 4 5 6 7 8 9 10 11 12 QUANTITY Refer to Figure 9-6. The tariff Ⓒa. increases producer surplus by the area C and decreases consumer surplus by the area C + D + E + F. Ob. decreases producer surplus by the area C and decreases consumer surplus by the area C+D+E+F. c. decreases producer surplus by the area C + D and decreases consumer surplus by the area D + E + F. d. increases producer surplus by the area B + C and decrease consumer surplus by the area D+E+F.
A trade restriction on the quantity of a good that an exporting country is allowed to export to another country is known as? a. Voluntary export restraint b. Export subsidy c. Quota d. Sanction
A country moves from a situation of no trade to a situation where it imports a good. Which of the following does not occur in the market for this good in the importing country? A. Deadweight loss decreases. B. Total surplus increases. C. Consumer surplus increases. D. Producer surplus decreases. E. Workers in the domestic industry lose.
The figure below illustrates the impact of an export subsidy as imposed by a large country. No imports are permitted. Price D D₁ O d. O b. So O (d+i+j). O (b+f+g). S₁ D Sa The production effect of the export subsidy is shown by area(s) Domestic price with subsidy World price World price with subsidy Quantity
The figure below shows the domestic demand (Dd) and domestic supply (Sa) curves of mopeds in a country before an import quota is imposed by the government. After the imposition of the quota, the maximum import quantity is QQ: Sa Sa+ Q. $800 $750 $715 World price New export price with quota Da 0.4 0.5 0.6 1.5 1.8 2.0 Quantity (Millions of Mopeds per year) If the government auctions the quota licenses, the importing nation will lose $29.75 million. O gain $21.5 million. O gain $31.5 million. lose $10 million.
Price per Saddle Domeslic Supply A B. P2 World Price Tariff P1 G Domestic Demand Q1 Q2 Q3 Q4 Quantity of Saddles Before the tariff is implemented, what is the size of consumer surplus? O A OA + B OA+B+ C + D + E + F OG+C
3. A fruit is traded in a competitive world market, and the world price is $10 per pound. The consumer quantity in this price is 100 million tonnes. One year later, overall fruit prices increase to $15 and total consumer level fall to 90 million tonnes. Under this circumstance, what is the price elasticity of demand fruit?
You are provided with the following information about the Canadian turkey market:1. The world price of turkey is $5.2. The Canadian turkey market is currently (before the new trade agreement) protected by a tariffrate quota (TRQ) of the following format:a) the in-quota tariff is $1 per unitb) the import quota volume is 100 unitsc) the over-quota tariff is $10 per unit.3. An excess demand (ED) (for imports) function for turkey has been estimated as? = 28 − 0.14?. Notes: Canada is a small importing country in the world market for turkeys. Answer the question below: The Canadian government is considering reducing the in-quota tariff to $0.50. Modify the diagram for this market, and solve for the Canadian turkey price and the volume of imports. Label all relevant functions, axes, etc.
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QUESTION 16 Figure # PRICE (Dollars per scooter) 111 Domestic Demand 57 3 3 400 720 QUANTITY (Scooters) Domestic Supply World Price 1040 Refer to Figure. The increase in total surplus resulting from trade is a. $46,560, since consumer surplus increases by $60,528 and producer surplus falls by $13,968. b.$3,840, since consumer surplus increases by $5.760 and producer surplus falls by $1,920. c. $15,360, since consumer surplus increases by $23,040 and producer surplus falls by $7,680. d. $7,680, since consumer surplus increases by $21,120 and producer surplus falls by $13,440.
Welfare impact of a voluntary export restraint for a small country 200s PC devel Loss in consumer surplus: B + C + D F Pd Po D 1 L L 1 A Q. BCD S Q₂ Small country Q4 S Gain in producer surplus: Capued ahe Loss in quota rents: Net loss (deadweight loss): CAT 87184 109 qad me
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