Price (dollars per ton)1,000800600400200012345D6Steel (millions of tons per year)The figure shows the market for steel in the United States. If the world price for a ton of steel is $200 per ton, how much steel does the United Statesimport? Suppose the United States imposes a tariff of $400 per ton of steel. With this tariff, how much steel does the United States import? If it ispossible to calculate the amount of the deadweight loss from the $400 per ton tariff, what is the amount? If it is not possible, explain why it is notpossible to calculate it. Next suppose the United States imposes a tariff of only $200 per ton of steel. With this tariff, how much steel does the UnitedStates import? How much revenue does the government collect from this tariff? Finally, suppose that instead of a tariff the United States imposes aquota of 2 million tons of steel per year. Illustrate how the market changes with this quota. With the quota, what is the price of steel in the UnitedStates?

Market without Tariffs (World Price at $200 per Ton)If the world price for steel is $200 per ton, we…

Answered: Price (dollars per ton) 1,000 800 600…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. The impact of a tariff Consider a hypothetical example of trade in aluminum between the United States and China. For simplicity, assume that China is the only source of U.S. aluminum imports. The following graph shows the U.S. market for aluminum. Note that in the absence of any trade, the market price for aluminum in the United States is $500 per tonne, and the equilibrium quantity is 250 million tonnes per month. Use the green area (triangle symbol) to show U.S. consumer surplus under free trade with China, and use the purple area (diamond symbol) to show U.S. producer surplus under free trade with China. 1000 Domestic Demand Domestic Supply 900 Consumer Surplus 800 700 Producer Surplus 600 500 400 Free Trade Price 300 200 100 200 250 300 350 400 450 500 50 100 150 QUANTITY OF ALUMINUM (Millions of tonnes per month) PRICE (Dollars per tonne)
The graph below shows the domestic supply of and demand for mangos in India. 25 24 23 22 21 20 19 18 17 16 15 (300, 18) 13 10 8 7 6 5 4 3 2 1 Price ($) 500 100 200 300 400 Quantity of mangos (cases) 600 '700 回回 The world price is $16 a case, and India is open to free trade. Will India export or import mangos? a. India will (Click to select) ☑ mangos since, (Click to select) b. What quantity will domestic producers supply? cases of mangos. c. What quantity will India export or import? Click to enl care of mannan
Quantify the effects of a country’s tariff on sugar Situation with import tariff Estimated situation without tariff World price $0.10per pound $0.10per pound Tariff $0.02per pound 0 Domestic price $0.12per pound $0.10per pound Domestic consumption (billions of pounds per year) 20 22 Domestic production (billions of pounds per year) 8 6 Imports (billions of pounds per year) 12 16 Calculate the following measures:• The domestic consumers’ gain from removing the tariff. • The domestic producers’ loss from removing the tariff. • The government tariff revenue loss.• The net effect on national well-being.
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 does 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. TRICKY YALL 855 820 PRICE (Dollars per ton) 785 750 715 680 645 610 575 540 Domestic Demand 105 0 40 A Domestic Supply Pu NO 120 160 200 240 260 320 340 400 QUANTITY (Tons of soybeans) If Guatemala is open to international trade in soybeans without any restrictions, it will import Suppose the Guatemalan government wants to reduce imports to exactly 160 tons of soybeans to help domestic producers. A tariff of tons of soybeans. per
4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for wheat in Bangladesh. The world price (Pw) of wheat is $270 per bushel 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 wheat and that there are no transportation or transaction costs associated with international trade in wheat. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. 540 Domestic Demand Domestic Supply 510 480 450 420 390 360 330 300 270 240 PRICE (Dollars per bushel) Pw 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Bushels of wheat) 400 bushels of wheat. If Bangladesh is open to international trade in wheat without any restrictions, it will import Suppose the Bangladeshi government wants to reduce imports to exactly 200 bushels of wheat to help domestic producers. A…
The effect of imposing a tariff on a specific imported good is to the domestic price of the good and the domestic production of the good. Select one: a. increase; increase b. decrease; increase c. decrease; decrease d. decrease; to leave unaffected.
Sujee International Trade - End of Chapter Problem The United States is the fifth largest sugar consumer and the fifth largest sugar producer in the world. The U.S. sugar industry has enjoyed trade protection since 1789 when Congress enacted the first tariff against foreign-produced sugar. The accompanying graph depicts the supply and demand for sugar in the United States in 2019. The world price for sugar was $0.12 per pound. a. The United States enacts an import tariff of 6 cents per pound. In the accompanying graph, place the line labeled "World price + tarill" in the graph to reflect this tariff. Price (cesta per pound) 52 54 48 24 18 D 0 B Market for sugar Domestic supply 19 24 Quantity (billions of pounds) CS d. Given the tarill, quantity demanded will be pounds. U.S. imports will therefore be PS e. As a result of the tariff, consumer surplus will economic surplus will GR World Price + tarif b. Next, using the shapes in the graph, shade the areas that represent consumer surplus…
Which of the following would be a reason China would place a tariff on Canadian lumber? A. China is trying to protect its domestic lumber industry. B. China is seeking to lower the cost of lumber for its citizens. C. China is able to offer its Chinese lumber at a lower cost than Canada. D. China is continuing its Free Trade policy with Canada.
This a part 3 questions
Using the following graph to answer the following questions. If the United States imposes a tariff of a $1.25 on T-shirts. 1. How many T-shirts does the United States import? 2. How much is the tariff revenue? 3. Which area is the consumer surplus? 4. Which area is the U.S. producer surplus? 5. Which area shows the loss in economic surplus? Price (dollars per T-shirt) 15 10 10 415 10 20 20 Tariff revenue 30 Imports with tariff 40 50 60 Sus Tariff World price Dus 70 80 Quantity (millions of T-shirts per year)
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Suppose that the world price of baseball caps is €1 and there are no import restrictions on this product. Assume that Spanish consumers are indifferent between domestic and imported baseball caps. a. What quantity of baseball caps will domestic suppliers supply to domestic consumers ?__________thousands

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