P 25 20 15 10 5- 0 COUNTRY 1 FS1 IP 03 d1 Q INTERNATIONAL MARKET 25 20 15 10 LO 5 P 25 20 S1 15 10 S2 FIP D2 0 0 3 6 9 1215182124Q LC P 5 D1 0- 691215182124 24. What is the net welfare gain from trade to the economy of country 1? (hint: the formula for calculating the area of a triangle is 1/2 times the base times the height) O(a) 3 O (b) 6 O (c) 9 O (d) 13.5 O (e) 18 COUNTRY 2 s2 FIP d2 0 3691215182124Q

P 25 20 15 10 5- 0 COUNTRY 1 FS1 IP 03 d1 Q INTERNATIONAL MARKET 25 20 15 10 LO 5 P 25 20 S1 15 10 S2 FIP D2 0 0 3 6 9 1215182124Q LC P 5 D1 0- 691215182124 24. What is the net welfare gain from trade to the economy of country 1? (hint: the formula for calculating the area of a triangle is 1/2 times the base times the height) O(a) 3 O (b) 6 O (c) 9 O (d) 13.5 O (e) 18 COUNTRY 2 s2 FIP d2 0 3691215182124Q

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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International market Country 2 Country 1 s2 S2 25 25 25 20 20 20 S1 15 15 15 s1 EIP IP IP 10 10 10 5 D2 d2 d1 Q SD1 0- 0 3 69 1215182124 O 0 3 6 9 1215182124Q 0369 1215182124 Q 18. What is the net welfare gain from trade to the economies of both countries together? (hint: the formula for calculating the area of a triangle is 1/2 times the base times the height) 6. 9. 13.5 33.75 P. P.
QUESTION 8 25 20 15 10 LO 5 P COUNTRY 1 A+ 11 s1 |⠀⠀⠀ SP -IP d1Q 0 0 3 6 9 1215182124 INTERNATIONAL MARKET P 25 20 15 10 5 0 0 3 6 9 12 15182124 08. Under open trade, who will gain and who will lose in country 1? a) consumers gain and producers lose. b) producers gain and consumers lose. c) both producers and consumers lose. d) the poor lose and the rich gain. DE S2 ⠀⠀ FIP D2 25 20 S1 15 10 5 d2 0 0 3 6 9 1215182124 Q D1 Q P COUNTRY 2 s2 IP
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3
The graph below shows the domestic supply and demand and the world price for an exporting country. Price of $100 shoes in 90 U.S. dollars C B D + B 80 D D Pworld 60 50 40 30 20 10 B A K O 1 Exporting country supply and demand graph 2 3 Schoos Exports = 2.5 million Identify the area on the graph that represents the consumer surplus for domestic consumers if the country exports its product. Dshoes 4 5 Millions of pairs of shoos
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Please explain the picture below.
In Country A, the production of 1 bicycle requires using resources that could otherwise be used to produce 11 lamps. In Country B, the production of 1 bicycle requires using resources that could otherwise be used to produce 15 lamps. Which country has a comparative advantage in making bicycles? LO26.2 a. Country A. b. Country B
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.
1.
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