Home's import demand curve (shown on the graph to the right) for wheat is Quo 80-40P. Foreign's demand curve is Foreign's supply curve is D-80-20P. -40+20P. 1) Using the line drawing tool, accurately graph Foreign's export supply curve. Label the curve EX 2) Using the point drawing tool, assuming free trade between the countries at zero transportation cost, indicate on the graph the world price of wheat and the volume of trade Label the point EQ Carefully follow the instructions above and only draw the required objects. What would the price of wheat be in the absence of trade? $(Round your answer to the nearest penny) Price, P EX 329 MD 10 20 30 40 50 60 70 80 90 100 Quantity, Q

Home's import demand curve (shown on the graph to the right) for wheat is Quo 80-40P. Foreign's demand curve is Foreign's supply curve is D-80-20P. -40+20P. 1) Using the line drawing tool, accurately graph Foreign's export supply curve. Label the curve EX 2) Using the point drawing tool, assuming free trade between the countries at zero transportation cost, indicate on the graph the world price of wheat and the volume of trade Label the point EQ Carefully follow the instructions above and only draw the required objects. What would the price of wheat be in the absence of trade? $(Round your answer to the nearest penny) Price, P EX 329 MD 10 20 30 40 50 60 70 80 90 100 Quantity, Q

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Based on Figure 1, choose the correct statement. Assume that Nation 2 a small country and imposes a tariff on imports of X. Figure 1. Partial equilibrium analysis effects of a tariff in Nation 2 P,($) Ars 0 |A C 10 J 'M *- 20 30 40 50 60 D, 70 80 1) Nation 2 faces a perfectly inelastic import supply at the world price of Pw = 2 and it can import any quantity of X. 2) Nation 2 faces a perfectly elastic import supply at the world price of Pw = 2 and it can import any quantity of X. 3) Nation 2 faces a perfectly elastic export supply at the world price of Pw = 1 and it can import any quantity of X. 4) Nation 2 faces a perfectly inelastic export supply at the world price of Pw = 1 and it can import any quantity of X.
Kazakhstan is an apple producer, as well as an importer of apples. Suppose the following graph shows Kazakhstan's domestic market for apples, where SK is the supply curve and Dk is the demand curve. The free trade world price of apples (Pw) is $200 per ton. Suppose Kazakhstan's government restricts imports of apples to 200,000 tons. The world price of apples is not affected by the quota. Analyze the effects of the quota on Kazakhstan's welfare. On the following graph, use the purple line (diamond symbol) to draw the Kazakhstan's supply curve including the quota SK+Q. (Hint: Draw this as a straight line even though this curve should be equivalent to the domestic supply curve below the world price.) Then use the grey line (star symbol) to indicate the new price of apples with a quota of 200,000 apples. PRICE (Dollars per ton) 1000 900 800 700 600 500 400 300 200 100 0 ▬▬▬‒‒‒‒ 0 50 SK 100 150 200 250 300 350 QUANTITY (Thousands of tons) D₂ K 400 Pw W 450 500 Sk+Q Price with Quota A Change…
1. Using a fully labelled diagram explain what happens when a tariff is added to foreign imports. The importing country is a small country. 2. Using the information below, determine which country (Home or Foreign) exports good X, how much it exports, and at what price. You are required to use the export supply and import demand functions to arrive at your answer. Home: Q 40- 10P, Foreign: Q=50 - 10P, Q = 20 + 10P Q=10+10P 3. Using the information in the previous question, find equations for the total world demand and total world supply of good X. Solve for equilibrium world price and quantity.
The following graph shows the domestic supply of and demand for soybeans in Guatemala. The world price (Pw ) of soybeans is $540 per ton and is represented by the horizontal black line. Throughout the question, assume that the amount demanded by any one country doès not affect the world price of soybeans and that there are no transportation or transaction costs associated with international trade in soybeans. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. 900 Domestic Demand Domestic Supply 855 810 765 720 675 630 585 Pw 540 495 450 40 80 120 160 200 240 280 320 360 400 QUANTITY (Tons of soybeans) PRICE (Dollars per ton)
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Kazakhstan is an apple producer, as well as an importer of apples. Suppose the following graph shows Kazakhstan's domestic market for apples, where SK is the supply curve and Dx is the demand curve. The free trade world price of apples (Pw) is $200 per ton. Suppose Kazakhstan's government restricts imports of apples to 200,000 tons. The world price of apples is not affected by the quota. Analyze the effects of the quota on Kazakhstan's welfare. On the following graph, use the purple line (diamond symbol) to draw the Kazakhstan's supply curve including the quota SK+Q. (Hint: Draw this as a straight line even though this curve should be equivalent to the domestic supply curve below the world price.) Then use the grey line (star symbol) to indicate the new price of apples with a quota of 200,000 apples. PRICE (Dollars per ton) 1000 900 800 700 600 500 400 300 200 100 0 0 50 SK Pw W 100 150 200 250 300 350 400 450 500 QUANTITY (Thousands of tons) SK+Q Price with Quota A Change in PS Quota…
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Suppose a large country A initially imposed a tariff on its imports and is now considering removing its tariff. Use a domestic-market graph to a) show the effect of country A’s tariff removal on the world’s price, country A’s import price, import quantity, consumer surplus, producer surplus, and government revenue. b) identify country A’s net welfare change as a result of its tariff removal. Is country A unambiguously better off? c) Use a different graph to show how foreign producers will be affected by country A’s tariff removal? d) What factor determines the level of optimal tariff for country A? Please make sure to graph fpr both parts "a" and "c"
4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for oranges in Zambia. The world price (Pw) of oranges is $780 per ton and is represented by the horizontal black line. Throughout the question, assume that the amount demanded by any one country does not affect the world price of oranges and that there are no transportation or transaction costs associated with international trade in oranges. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. 1275 Domestic Demand 1165 1110 1055 X 1000 945 890 I PRICE (Dollars per ton) 1220 835 780 725 " 0 40 Domestic Supply 80 120 160 200 240 280 QUANTITY (Tons of oranges) " Pw 320 380 400 (?)
3. Welfare effects of a tariff in a small country Suppose Ronduras is open to free trade in the world market for soybeans. Because of Honduras's small size, the demand for and supply of soybeans in Honduras do not affect the world price. The following graph shows the domestic soybeans market in Honduras. The world price of soybeans is Pw = $400 per ton. On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer surplus (CS) when the economy is at the free-trade equilibrium. Then, use the purple triangle (diamond symbols) to shade the area representing producer surplus (PS). 1200 Domestic Demand Domestic Supply 1100 CS 1000 900 PS 800 700 600 500 400 300 200 100 120 140 160 180 200 20 40 60 80 QUANTITY (Tons of soybeans) PRICE (Dollars pe: ton)
Country X has 100 units of labour and country Y has 200 units of labour. Both countries produce computers and televisions. The unit labour requirements are given in the table below: Computers Televisions Country X 50 Country Y 100 Assume that free trade exists and that the relative price is such that both countries specialize completely in the industry in which they have a comparative advantage (neither country produces both goods). The supply of computers relative to televisions will be Select one: a. 0.02 (or 1/50) O b. 0.013 (or 1/75) c. 0.01 (or 1/100) d. impossible to determine without knowing the relative price of computers in terms of televisions
A country decides to impose higher tariffs on imported goods to encourage domestic production. This policy change impacts the circular flow of income and expenditure by altering the dynamics of international trade. In this scenario, the imposition of tariffs on imports primarily:A) Acts as a leakage in the circular flowB) Functions as an injection into the circular flowC) Has no significant impact on the circular flowD) Reduces government expenditure in the circular flow Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.