Question 21 Suppose supply is given by P = 2Q and demand is given by P = 1000 - 2Q. What will happen in this economy if the world price is 400? An export of 100 units An import of 100 units An import of 200 units An export of 200 units
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- Table 19.3 Domestic Supply and Demand for Tulips in the Netherlands Demand Supply Q P($) Q P($) 12,000 0 6,000 0 10,000 1 7,000 1 8,000 2 8,000 2 6,000 3 9,000 3 4,000 4 10,000 4 Refer to Table 19.3, which shows the demand, supply, and price of tulips in the Netherlands. If the world price of tulips is $1 and there are no trade restrictions, the Netherlands will _____ Group of answer choices consume all of the tulips that it produces. produce 10,000 and consume 10,000 tulips. import all of the tulips that it consumes. produce 9,000, consume 6,000, and export 6,000 tulips. produce 7,000, consume 10,000, and export 3,000 tulips.A Moving to another question will save this response. Question 7 Suppose supply is given by P = 2Q and demand is given by P = 1000 – 2Q. What will happen in this economy if the world price is 400? An export of 200 units An import of 200 units An export of 100 units An import of 100 units A Moving to another question will save this response. MacBook Air[India is the world’s largest consumer of sugar. Assume the world price for sugar is $750 per ton.] [Assume India currently has a tariff of $50 per ton on sugar and imports 7 million tons of sugar. Show this situation in a graph. Label the quantity demanded and the quantity supplied domestically and imports clearly on a graph. Explain your graph in 3-4 sentences. How to draw the graph?
- Price $36 $30 $26 Home market O $200. $240. $80. $160. 20 40 80 100 Quantity Price World market 40 80 X + t Imports If a tariff of $10 is imposed by the home country, it causes a loss in the world market (exclusive of any effects on the home market) of:US imports of sugar are subject to a quota. Although rounded up, the figures used in this exercise are close to reality. Thanks to the quota, US production of sugar is 6 million ton/year, instead of 5 million without the quota, and US consumption of sugar is 8 million ton/year, instead of 9 million without the quota. The US consumer pays $480/ton, whereas the world price is $280/ton. a) Easy: What is the volume of the quota? b) Easy: Why is the US price higher with the quota? c) Medium: Can you plot US supply and demand curves? Show graphically the impact of the quota for consumers and producers.Predict what happen to the international price and quantity traded of the manufactured good in Figure 1.4 with an improvement in technology in the domestic market.
- Question 7 Consider again this same graph: Price 40 8 7 6 5 4 3 2 0 Tariff Domestic supply Domestic demand 10 20 30 40 50 60 70 80 World price Quantity Tell me the amount of gains from trade, carefully following all numeric instructions.12. If the free trade price is lIP and this country imposes a trade tariff of $3, what will be the resulting net welfare loss to the economy? a)$3 b)$27 C)$13.5 d)$40.5 e)$9 13. if the free trade price is IP and this country imposes an import quota of 6 units, what will be the welfare loss to this economy? a)$3 b)$27 c)$13.5 d)$40.5 e)$18Please help
- Consider the following information pertaining to a country's imports, consumption, and production of t-shirts following the removal of Multi Fiber Agreement (MFA) quotas: Under After МFA МFA World Price ($/shirt) Domestic Price (S/shirt) Domestic Consumption (millions of shirts) Domestic Production (millions of shirts) 2.00 2.00 2.50 2.00 100 125 75 50 a. Use the information in the table above to graph the effects of the quota removal on domestic consumption and production. Include a companion graph for the world market like that shown in class. b. The deadweight loss associated with the quota is: c. The quota rents that were earned under the quota are: d. The gain in consumer surplus associated with quota removal is: e. The loss in producer surplus from the removal of the quota is: f. Assuming that the foreign government assigned the quota licenses, the amount the home country gained from removal of the quota is: 4.The tsunamis that hit Japan in 2011 and India and Sri Lanka in 2004 were devastating, and their effects were felt for many years afterward. Natural disasters of this type as well as international events often result in severe disruptions to the supply ofallegations that meat inspectors and politicians had received bribes to overlook improper meat packing practices and allow sales of tainted food. How would the closing of export markets for a country’s beef products together with a fall in domestic sales of beef products and an increase in the domestic equilibrium quantity be reflected in supply-anddemand diagrams of that country’s foreign and domestic markets for beef in the short run?Assume that Canada is an importer of televisions and that there are no trade restrictions. Canadian consumers buy 1.2 million televisions per year, of which 600,000 are produced domestically and 600,000 are imported. Suppose that a technological advance among Japanese television manufacturers causes the world price to fall $800 to $700. Draw a graph to show how this change affects the welfare of Canadian consumers and Canadian producers and how it affects total surplus in Canada. Label the diagram carefully to show all the areas using letters of alphabets. (Do not shade the areas). After the fall in price, consumers buy 1.4 million televisions, of which 400,000 are produced domestically and 1 million are imported. Calculate the change (this will be only the area either gained or lost by consumers and producers) in consumer surplus, producer surplus and total surplus due to price reduction. Provide numerical answers by calculating the area of change in surplus due to fall in…