Recently, US imposed new tariffs on Canadian softwood lumber. Lumber is intensively used in the construction and renovation projects for single-family homes.US Mkt. for lumber. Pw is the price of lumber available to domestic construction firms before the imposition of tariffs. On the graph, show (1) the price of lumber with tariff (PT); (2) quantity of lumber produced by domestic producers (Qsd); (3) quantity of lumber bought by domestic construction firms (Qdd); (4) quantity of lumber imported (IM); (5) revenue from tariff (TR); (6) Tariff deadweight loss (DWL). (5) With up/down arrows, indicate the change in the price of lumber available to domestic construction firms___, quantity of lumber available to domestic construction firms__ , quantity of lumber produced in the US__.In the market for lumber:1. (10%) Label clearly the supply and demand curves, S and D, and .2. (60%) On the graph, construct and label clearly (1) the price after the introduction of the tariff (PT)(2) quantity of lumber produced by domestic producers (Qsd);(3) quantity of lumber bought by domestic construction firms (Qdd);(4) quantity of lumber imported (IM);(5) revenue from tariff (TR);(6) Tariff deadweight loss (DWL) 3. (30%) In the text, fill-in the blank spaces with upward/downward pointing arrows to indicate what happens with (1) the price of lumber to domestic construction firms, (2) the quantity of lumber available to domestic cosntruction firms, and (3) the quantity lumber produced in the US. реpwqe

Given information Supply and demand curve is given. Word price is given as Pw Equilibrium price Pe…

Answered: Recently, US imposed new tariffs on…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Recently, US imposed new tariffs on Canadian softwood lumber. Lumber is intensively used in the construction and renovation projects for single-family homes.

US Mkt. for lumber. Pw is the price of lumber available to domestic construction firms before the imposition of tariffs. On the graph, show (1) the price of lumber with tariff (PT); (2) quantity of lumber produced by domestic producers (Qsd); (3) quantity of lumber bought by domestic construction firms (Qdd); (4) quantity of lumber imported (IM); (5) revenue from tariff (TR); (6) Tariff deadweight loss (DWL). (5) With up/down arrows, indicate the change in the price of lumber available to domestic construction firms___, quantity of lumber available to domestic construction firms__ , quantity of lumber produced in the US__.

In the market for lumber:

1. (10%) Label clearly the supply and demand curves, S and D, and .

2. (60%) On the graph, construct and label clearly

(1) the price after the introduction of the tariff (PT)

(2) quantity of lumber produced by domestic producers (Qsd);

(3) quantity of lumber bought by domestic construction firms (Qdd);

(4) quantity of lumber imported (IM);

(5) revenue from tariff (TR);

(6) Tariff deadweight loss (DWL)

3. (30%) In the text, fill-in the blank spaces with upward/downward pointing arrows to indicate what happens with (1) the price of lumber to domestic construction firms, (2) the quantity of lumber available to domestic cosntruction firms, and (3) the quantity lumber produced in the US.

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