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ed lus Imports) Quantity Demanded 0 15 14 8 13 12 12 16 20 10 24 9 mbol) to plot the demand curve and use the orange points (square symbol, hen use the black cross to indicate the equilibrium price and quantity. ? Demand -P- Supply us free trade EquilibriumFree trade Supply wond wit *

ed lus Imports) Quantity Demanded 0 15 14 8 13 12 12 16 20 10 24 9 mbol) to plot the demand curve and use the orange points (square symbol, hen use the black cross to indicate the equilibrium price and quantity. ? Demand -P- Supply us free trade EquilibriumFree trade Supply wond wit *

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Assume that the United States, as a steel-importing nation, is large enough so that changes in the quantity of its imports influence the world price of steel. The following table shows the U.S. supply and demand schedules for steel, along with the overall amount of steel supplied to U.S. consumers by domestic and foreign producers. Price Quantity Supplied (Dollars per ton) (Domestic) (Domestic plus Imports) Quantity Demanded 100 0 0 15 200 4 14 300 8 13 400 12 12 500 16 11 600 20 10 700 5 24 9 Using the data in the table, use the blue points (circle symbol) to plot the demand curve and use the orange points (square symbol) to plot the supply curve (domestic plus imports) on the following graph. Then use the black cross to indicate the equilibrium price and quantity. BOO -O Demand -P Supply us free trade + Equilibrium Free trade 4 Supply wond wit Equilibrium PRICE (Dollars per fon) 700 600 500 400 300 200 100+ 0 6 0 1 2 3 4 10 12 14 16 18 20 22 24 0 2 4 QUANTITY (Tons of steel) With free trade, the equilibrium price of steel is S per ton. At this price, tons are purchased by U.S. buyers, tons are supplied by U.S. producers, and tons are imported. Suppose that to protect its producers from foreign competition, the U.S. government levies a specific tariff of $250 per ton on steel imports. As a result, the free trade curve shifts to the by an amount, the amount of the tariff. * On the previous graph, use the purple point (diamond symbol) to plot the new world supply curve after the tariff is imposed. Then use the grey point (star symbol) to indicate the equilibrium point given the tariff of $250. The new equilibrium is tons of steel traded at 3 per ton. At this price, U.S. producers supply tons, and tons are imported.
Transcribed Image Text:Assume that the United States, as a steel-importing nation, is large enough so that changes in the quantity of its imports influence the world price of steel. The following table shows the U.S. supply and demand schedules for steel, along with the overall amount of steel supplied to U.S. consumers by domestic and foreign producers. Price Quantity Supplied (Dollars per ton) (Domestic) (Domestic plus Imports) Quantity Demanded 100 0 0 15 200 4 14 300 8 13 400 12 12 500 16 11 600 20 10 700 5 24 9 Using the data in the table, use the blue points (circle symbol) to plot the demand curve and use the orange points (square symbol) to plot the supply curve (domestic plus imports) on the following graph. Then use the black cross to indicate the equilibrium price and quantity. BOO -O Demand -P Supply us free trade + Equilibrium Free trade 4 Supply wond wit Equilibrium PRICE (Dollars per fon) 700 600 500 400 300 200 100+ 0 6 0 1 2 3 4 10 12 14 16 18 20 22 24 0 2 4 QUANTITY (Tons of steel) With free trade, the equilibrium price of steel is S per ton. At this price, tons are purchased by U.S. buyers, tons are supplied by U.S. producers, and tons are imported. Suppose that to protect its producers from foreign competition, the U.S. government levies a specific tariff of $250 per ton on steel imports. As a result, the free trade curve shifts to the by an amount, the amount of the tariff. * On the previous graph, use the purple point (diamond symbol) to plot the new world supply curve after the tariff is imposed. Then use the grey point (star symbol) to indicate the equilibrium point given the tariff of $250. The new equilibrium is tons of steel traded at 3 per ton. At this price, U.S. producers supply tons, and tons are imported.
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