QUESTION 24 25 20 15 10 5 0 P 0 3 6 9 12 15 -IP 18 21 24 D Q 24. If the free trade price is IP and this country imposes a trade tariff of $3, what will be the resulting welfare loss to consumers? (Hint: the area of a triangle is 1/2 the base times the height) O a) $3 O b) $40.5 O c) $9 O d) $27 O e) $13.5

QUESTION 24 25 20 15 10 5 0 P 0 3 6 9 12 15 -IP 18 21 24 D Q 24. If the free trade price is IP and this country imposes a trade tariff of $3, what will be the resulting welfare loss to consumers? (Hint: the area of a triangle is 1/2 the base times the height) O a) $3 O b) $40.5 O c) $9 O d) $27 O e) $13.5

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. Given below are two groups’ (consumers, c, and a special interest group, i) true demands concerning a tariff on snack foods. Demand against (consumers): wtp($) = 80 + 2t Demand for (special interest): wtp($) = 50 - t Where t is the tariff rate. a. Graph the demand curves and explain how much tariff there will be if there were no free riding and all preferences were fully revealed. b. Now assume that “free riding” plagues the consumer group so that their revealed willingness to pay is given by: wtp($) = 30 + t . What are some causes of the “free riding”? Why is this not likely to happen to the producer group? c. Now what will be the equilibrium tariff rate? Graph this scenario in the same graph. d. Relate the outcome to a partial equilibrium tariff graph.
25 20 15 10 5 0 0 50 -IP D 3 6 9 12 15 18 21 24 Q 25. If the free trade price is IP and this country imposes an import quota of 6 units, what will be the resulting efficiency loss? O a) $3 O b) So O c) $13.5 d) $40.5 e) $18
Welfare Impact of Import Tariffs and Quotas PE PL+ PL A R 16 F Q₂ Q. H CODE Q'm Qm O D 18 18) Based on the graph above, the sources of welfare losses to society originating from the imposition of tariffs are: I a) Reduced imports. b) Increased production by less efficient domestic producers relative to foreign producers. c) Rent-seeking costs d) All of the above
A small country is facing the following domestic supply curve of a product: S = 200 + 20P, as well as the following domestic demand curve of a product: D = 400 - 20P. It can import it at a world price of 10 per unit. In addition, each unit of production yields a marginal social benefit of 10. The effect on welfare of an import tariff of 6 per unit is $. O -420 O 500 O -480 O 420 O 320 -500 O :180 O -320 480 O 180
To protect domestic producers, the Polish parliament is considering a measure which, starting December next year, would apply more stringent health standards and extensive administrative rules (more paperwork) against all imported beef products. Should the measure pass the Polish parliament, it would be an example of a country using a(n)- to protect its domestic market O import duty Otariff barrier non-tariff barrier. all the above are true
15 Supply 14 13 12 11 -10 Demand -5 4 2 1 2 3 0. 5 6 7 89 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Refer to the above picture for the following question. Suppose the world price is originally $5 and a tariff of $2 is imposed. The quantity bought by the US will go down from to The quantity produced by the US will go up from to Imports will decrease from to
1-The analysis of a guote implies that a) the effect of guota on trade is the same as a tariff b) a guota will cause the same deadweight losses as a tariff c) states should prefer guota instead of tariff d) a quota increases imports if it is associated with high price elasticity of demand e) when a quote is applied the consumer surplus decreases but the producer surplus does not increase because only the state benefits from the quota
I need both solution plz...
1. Given below are two groups' (consumers, c, and a special interest group, i) true demands concerning a tariff on snack foods. Demand against (consumers): wtp($) = 80 + 2t Demand for (special interest): wtp($) = 50 - t Where t is the tariff rate. a. Graph the demand curves and explain how much tariff there will be if there were no free riding and all preferences were fully revealed. b. Now assume that "free riding" plagues the consumer group so that their revealed willingness to pay is given by: wtp($) = 30 + t. What are some causes of the "free riding"? Why is this not likely to happen to the producer group? c. Now what will be the equilibrium tariff rate? Graph this scenario in the same graph. d. Relate the outcome to a partial equilibrium tariff graph.
You manage a ball-bearing factory for a company that successfully lobbies Congress to place a tariff on imported ball-bearings. As a result: both your company and your customers will be better off your company will be better off, but your customers will be unaffected. O.C. your company will be unaffected, but your customers will be worse off Od. your company will be better off, and your customers will be worse off O a. O b.
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