(Figure: The Market for Calculators) Use Figure: The Market for Calculators. Assume that S and D represent the domestic demand and supply of calculators. The world price, Pw, equals $100. The government imposes a quota restricting imports to 25 calculators. The domestic price rises to and the quota rent is equal to area Figure: The Market for Calculators Price of calculators $300 150 120 100 50 0 A G "Hy... 35 50 60 S $120; K+L $150; G+H+I+J $120; H+ I $150; K+ H+I+L PW D Quantity of calculators

(Figure: The Market for Calculators) Use Figure: The Market for Calculators. Assume that S and D represent the domestic demand and supply of calculators. The world price, Pw, equals $100. The government imposes a quota restricting imports to 25 calculators. The domestic price rises to and the quota rent is equal to area Figure: The Market for Calculators Price of calculators $300 150 120 100 50 0 A G "Hy... 35 50 60 S $120; K+L $150; G+H+I+J $120; H+ I $150; K+ H+I+L PW D Quantity of calculators

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In the domestic market with no trade, the equilibrium price is _____ and the quantity traded is ____ units a. $90, 1,150 b. $60, 650 c. $60, 1,150 d. $40, 1,800
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10. Problems and Applications Q10 Consider a small country that exports steel. Suppose the following graph depicts the domestic demand and supply for steel in this country. One of the two price lines represents the world price of steel. Use the following graph to help you answer the questions below. You will not be graded on any changes made to this graph. Price of Steel (Dollars perton) 100 90 2 2 2 2 2 2 - 60 40 30 20 10 Demand 0 100 200 300 400 500 600 700 Quantity of Steel (Tons) Supply 800 900 1000 Triangle Polygon
(Figure: Market for Engines) If there is international trade in the market and the world price of an engine is $800, what do areas a and b represent in the figure below?
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2. According to the graph, answer the following questions about Pencil Sharpeners. Price of Pencil Sharpeners $24 16 12 4 Domestic Supply World Price Domestic Demand 0 200 300 450 Quantity of Pencil Sharpeners a. What is the equilibrium price of Pencil Sharpeners before trade? b. What is the equilibrium quantity of Pencil Sharpeners before trade? c. What is the price of Pencil Sharpeners after trade is allowed? d. What is the quantity of Pencil Sharpeners exported? e. What is the amount of consumer surplus before trade? f. What is the amount of consumer surplus after trade? g. What is the amount of producer surplus before trade? h. What is the amount of producer surplus after trade? i. What is the amount of total surplus before trade? j. What is the amount of total surplus after trade? k. What is the change in total surplus because of trade?
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D Question 10 Suppose before tariff, the price of imported avocado from Mexico to United States is $1.06 and 898 avocados are imported. After a 15 percent tariff, number of avocados is decreased to 772. What's the dead weight loss caused by this tariff? [Hint: Round your answer to 2 decimal places
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