do fast Price ofBaskets$141010710400070105DomesticSupplyWorldPriceDomesticDemandQuantity ofBasketsRefer to figure. Based on the world price, what should the country do regarding the baskets?This country would be better off if the world price for baskets and its pre-trade price were equal.This country should export the baskets since it has an absolute advantage in baskets.This country should import baskets since it lacks a comparative advantage is baskets.This country should export the baskets since it has a comparative advantage in baskets.

The graph of supply and demand shown does indeed demonstrate that this country has a comparative…

Answered: Price of Baskets $14 10 10 7 1 0 40 00…

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 2CQQ

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Assume two countries, Thailand (T) and Japan (J), have one good: cameras. The demand (d) and supply (s) for cameras In Thailand and Japan is described by the following functions: QsT=-5+14P QsJ=-10+14P QdT=60-P QdJ=80-P P is the price measured in a common currency used in both countries, such as the Thai Baht. Compute the equilibrium price (P) and quantities in each country without trade. Now assume that free trade occurs. The free-trade price goes to 56.36 Baht. Who exports and Imports cameras and in what quantities?
Which of the following are potentially valid arguments for tariffs or export subsi- dies, and which are not? Explain your answers. a. “Dairy producer earning in Wales are at their lowest peak despite an overallrise in farm business incomes.” b. “ThemoreecologicallycertifiedfoodsEuropeanUnionrequires,thehighertheprice of these products will be on common market.” c. “US soybean exports to China and India don’t just mean increased wealth forfarmers – they mean increased wealth for everyone in the value chain.” d. “ThePETindustrycontinuedtosustainU.S.recyclingprograms;thisshowsthe strength of the PET recycling market in the face of significant global economicslowdown and a drop in virgin feedstock prices.” e. “The price of coal has been stable, but the production dropped 10.3 percent, and workers have been forced to look for other jobs.”
The country of Pepperland exports steel to the Landof Submarines. Information for the quantity demanded(Qd) and quantity supplied (Qs) in each country, in aworld without trade, are given in Table 34.6 and Table34.7. a. What would be the equilibrium price andquantity in each country in a world withouttrade? How can you tell?b. What would be the equilibrium price andquantity in each country if trade is allowed tooccur? How can you tell?c. Sketch two supply and demand diagrams, one foreach country, in the situation before trade.d. On those diagrams, show the equilibrium priceand the levels of exports and imports in the worldafter trade.e. If the Land of Submarines imposes an antidumping import quota of 30, explain in generalterms whether it will benefit or injure consumersand producers in each country.f. Does your general answer change if the Land ofSubmarines imposes an import quota of 70?
If the world price is greater than $120, does this create a shortage or surplus of contact lenses in the domestic market? PS- Graph shown is for contact lenses Idk what would the right answer is?
Using the graph, assume that the government imposes a $1 tariff on hammers, Answer the following questions given this information, (see the attached pictures.)
1he world price of wine is below the price that wouldprevail in Canada in the absence of trade.n Assuming that Canadian imports of wine arc asmall part of total world wine production, drawa graph for the Canadian market for wine underfree trade. (dentify consumer surplus, producersurplus, and total surplus in an appropriate table.h. Now suppose that an unusual shift of the GulfStream leads to an unseasonably cold summerin Europe, destroying much of the grape harvf"st thNP. What eff,..ct dnM thi~ "hock h:tvPonthe world price of wine? Using your graph andtable from part (a), show the effect on consumersurplus, producer surplus, and total surplusin Canada. Who arc the winners and losers?l" C':ln:'lci:'l M :t whnlP hPHf"r nr wnMOf" nff?
pnal Economi 2. In the accompanying figure, P is the world price and Pw + T is the world price plus a tariff. Identify the following: W W a. The level of imports at P b. The level of imports at Pw+ T W W c. The loss in consumers' surplus as a result of a tariff d. The gain in producers' surplus as a result of a tariff e. The revenue received as a result of a tariff f. The net loss to society as a result of a tariff g. The net benefit to society of moving from a tariff to no tariff
The two main reasons why international trade is restricted are that tariffs O A. save jobs and allow domestic producers to compete with foreign firms that use cheap labor penalize lax environmental standards and protect defense industries O B. O C. create tariff revenue and rent seeking is popular O D. protect infant industries from competition and protect national security The countries that benefit most from tariff revenue are O A. countries involved in trade organizations but are separated by large distances OB. developed countries OC. developing countries O D. countries involved in trade agreements such as NAFTA and the European Union The United States still implements some trade restrictions because the people who would lose from free trade would lose big and the people who gain, would gain a small amount. O A. True O B. False
Please helpwith how you calculate the mangos
Hello, I keep getting this question wrong on my practice HW but im not sure what im doing wrong.
NAFTA puts a halt to international trade. True O False
give correct answer in 10 mins thanks

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