Figure 9-24 The following diagram shows the domestic demand and supply in a market. Assume that the world price in this market is $20 per unit. 90 80 70- 60- 50 40 30 20 10 Price 5 10 15 20 25 30 Supply Demand + 35 40 Quantity Refer to Figure 9-24. Suppose the government imposes a tariff of $10 per unit. With trade and a tariff, total surplus is O a. $750. O b. $900. O c. $950. O d. $1,550.

Figure 9-24 The following diagram shows the domestic demand and supply in a market. Assume that the world price in this market is $20 per unit. 90 80 70- 60- 50 40 30 20 10 Price 5 10 15 20 25 30 Supply Demand + 35 40 Quantity Refer to Figure 9-24. Suppose the government imposes a tariff of $10 per unit. With trade and a tariff, total surplus is O a. $750. O b. $900. O c. $950. O d. $1,550.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Figure 50-5: Gains from Trade Price $6 5 4 3 2 O $0. O $22.50. $26.25. O $52.50. 10 $30. 20 30 40 (Figure 50-5: Gains from Trade) The equilibrium price in this market is $2.50 and the equilibrium quantity is 25 units. If the government imposes a tax of $3 in this market, only 10 units will be sold, and the deadweight loss will equal: S D₁ 50 Quantity 60
The hypothetical country of Crabby Island has imposed a production quota of 4,000 crabs per month. Use the line segment in the graph below to show this production quota then answer the following question. Price ($) 10 9 8 7 (O 5 4 3 2 1 2000 Production quota 4000 6000 Quantity (crabs per month) Supply Demand 8000 10000 1. Use the line segment to show a production quota of 4,000 crabs per month. 2. What is the price of crab after the introduction of the quota? GA Number
11
Figure 5 Price of Wagons $18.5 8 00 5 0 40 70 90 Domestic Supply World Price Domestic Demand Quantity of Wagons Refer to Figure 5. The increase in total surplus resulting from trade is Select one: O a. $60, since consumer surplus increases by $180 and producer surplus falls by $240. O b. $75, since consumer surplus increases by $300 and producer surplus falls by $225. O c. $60, since producer surplus increases by $180 and consumer surplus falls by $240. O d. $75, since consumer surplus increases by $240 and producer surplus falls by $165.
Chapter 10: In the small open economy of Gatorland, the domestic demand for widgets is given by P=100-3Q; the home supply of widget is given by P = Q. The world price is $40. Now let the government of Gatorland give a $15 per unit subsidy on each widget exported. What is the value of total subsidy payments to Gatorland's widget exporters? O $825 O $600 O $125 O $225
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7. What would happen to world welfare if the United States paid exporters a subsidy of $5 for every pair of blue jeans they sold to Canada, but Canada charged a $5 countervailing duty on every pair imported into Canada? Would the United States gain from the combi- nation of the export subsidy and import tariff? Would Canada? Explain. (In your answer, assume that the blue jeans market is perfectly competitive.) 8. Consider the case
Figure 4-13 1Price 20 1Price 20 18 Producer A 18 Producer B S1 16 16 + 14 14 12 12 10 10 $2 8. 8 6. 6 4 4 4 6 8 10 12 14 Quantity 2 4 6 16 Quantity 16 10 12 14 Refer to Figure 4-13. If Producer A and Producer B are the only producers in the market, then the market quantity supplied when the price is $2 is Select one: O a. 8 units. O b. 4 units. 10 units. d. 6 units.
Country A is a large Importer of good 1. If country A imposes a sighifficant import tariff on good O a there will be no deadweight loss in country A. Ob country As welfare in this market will increase for sure. O c country A's welfare in this market will decrease for sure. O d. country As welfare in this market will stay the same for sure. Oe None of the above.
Based on Figure 48, choose the correct statement. Assume that Nation 2 imposes a quota (30X) on imports of X (an agricultural commodity). Figure 48 Partial equilibrium effects of an import quota Py (S) 25 10 20 25 30 40 50 55 60 65 70 O 1) Given the increase in demand from Dx to D'x, the price of X increases to $2.5, and the quota is 20X. 2) Given the increase in demand from Dx to D'x, the price of X increases to $2.5, and the quota is 55X. 3) Given the increase in demand from Dx to D'x, the price of X increases to $2, and the quota is the same. O 4) Given the increase in demand from Dx to D'x, the price of X increases to $2.5, and the quota is the same.
46. Chapter mank071, Section .61, Problem 024 8. $30. OC. $90. OD. $110. Ask me anything 5 8 8 8 8 8 8 8 8 8 8 8888 8 150- 140- 130+ 120- 110- 100+ 30 Price 10+ B Figure 9-1 The figure illustrates the market for coffee in Guatemala. Refer to Figure 9-1. In the absence of trade, the equilibrium price of coffee in Guatemala is OA. $140. C C (2 2 4 6 8 10 12 14 16 18 20 B 8 D F 24 8. $8. 8 S I H 8 ·88 8. 5. Domestic supply World price Domestic demand 3 46 48 50 52 Quantity