Q: 8. Which of the following would be a deadweight loss from a tariff? A) The shift of consumer surplus…
A: Answer for the given question 9:- Explanation:- There will be decrease in import by 20 million…
Q: 11. (Figure: Home Market II) For the large-country in the graph, after the tariff is imposed, the…
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Q: 3. Import quotas Kazakhstan is an apple producer, as well as an importer of apples. Suppose the…
A: A deadweight loss implies to cost to society made by market inefficiency, which happens when supply…
Q: demand curve is given by Q=36-2P and its supply curve is given by Q=4P-12. Assume the world is…
A: Free trade refers to a policy framework and economic system that promotes the exchange of goods and…
Q: PRICE (Dollars per tom 470 440 410 380 350 320 290 0 30 60 90 120 150 180 210 240 270 300 QUANTITY…
A: Market equilibrium(E) is a state where the quantity(Q) of goods or services demanded by buyers…
Q: Consider the following: PRICE (Dollars per unit of coffee) 140 110 90 30 A B C D G H Domestic Supply…
A: The demand curve is the downward-sloping curve. The supply curve is the upward-sloping curve.The…
Q: Consider a small country where the domestic market for sandals is described by the following demand…
A: Equilibrium is achieved at the output level where Qs equals Qd.
Q: CENGAGE MINDTAP MindTap Assignment 4 (Chapters 9,13) Q s The following graph shows the same domestic…
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A: In the production process, the conditions and fluctuations that happen between demand and also the…
Q: Suppose that the world price of a pair of pants is $60, so domestic producers will export some of…
A: Total surplus = consumer surplus + producer surplus
Q: Homework: International Trade and Comparative Advantage 440 Supply 340 315 K 290 265 Demand PRICE…
A: We have been given the market for wheat in New Zealand. The world price is lower than the New…
Q: A tariff is usually considered to be better than a quota because quotas hurt domestic producers;…
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Q: 40 36 32 28 24 20 16 12 8 16 24 32 40 48 56 64 Quantity (millions of shirts per year) The figure…
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Q: Exporting countries Which of the following will be true, everything else remaining constant, for a…
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Q: The diagram below shows supply and demand curves for the same good in two countries, A and B. Based…
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Q: 7. What happens to the domestic market when suppliers start to gain comparative advantage and export…
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Q: Kazakhstan is a grape producer, as well as an importer of grapes. Suppose the following graph shows…
A: Deadweight loss is the cost that society has to bear because of the inefficiency of the market…
Q: When Venezuela allows free trade, the country's consumer surplus by and producer surplus by So, the…
A: Without free trade, the consumer surplus(CS) is $8,750. CS is the area under the demand(DD) curve…
Q: PRICE (Dollars per ton) 1000 900 800 700 600 500 400 300 200 --- 100 0 SK 0 50 100 150 200 250 300…
A: In the given graph, the domestic supply of apples in Kazakhstan is represented by SK, and the…
Q: Suppose the demand and the supply for lumber (harvested wood processed in a sawmill) used for…
A: Given information Domestic demand function QD =100 – 2PDomestic supply function QS = 1/2P World…
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Q: Use the following graph to show the effects of the $60 tariff. Use the black line (plus symbol) to…
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Q: Suppose Bolivia is open to free trade in the world market for wheat. Because of Bolivia's small…
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Q: Price Pi P3 P2 SS S3 $2 Ꭰ Quantity What does S3 most likely represent? Multiple Choice U.S. supply…
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Q: The following graph shows the domestic supply of and demand for soybeans in Honduras. The world…
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Q: In Italy, the domestic market demand for rice is P = 100-2Q, and the domestic market supply of rice…
A: Domestic demand function: P=100−2Q .... (1)Domestic supply equation: P=10+Q ...…
Q: S=20+20P and D = 100-20P are Home's supply and demand curves for wheat. S = 40 + 20P and D = 80-20P…
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Q: $50 $48 $40 Price 5 10 17 Initial price in the U.S. Mexico price China price US demand for import…
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Q: The small nation of Capralia has an abundant stock of Pashmina goats, a breed that yields…
A: Demand is the consumer's willingness to consume goods at its given price level in the market. Supply…
Q: a. Consider a closed economy (an autarky). The equilibrium price of computers in this autarky is…
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Q: Price of Baskets $14 10 7 1 $45 $80 $160 40 $210 70 105 Domestic Supply Refer to Figure 9-1. With…
A: With free trade the price would be set at the world price i.e.$10 Consumer surplus is the area…
Q: Price of Wagons gain by $240 lose by $240 gain by $120 lose by $75 $18.5 8 5 1 0 40 70 90 Domestic…
A: Consumer surplus is difference between consumer's willingness to pay and price he is actually…
Q: Price of Pencil Sharpeners $24 16 12 200 300 450 Domestic Supply World Price Domestic Demand…
A: Total surplus refers to the addition of the area of the consumer and the producer surplus. In other…
Q: Suppose Guatemala is open to free trade in the world market for wheat. Since Guatemala is small…
A:
Q: The following graph shows U.S. demand for and domestic supply of a good. Suppose the world price of…
A: Producer surplus is the area below the price and above the supply curve.
![Figure 9-1
Price of
Baskets
$14
Domestic
Supply
World
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10
Domestic
Demand
Quantity of
Baskets
40
70
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- Use the green point (triangle symbol) to shade consumer surplus in Cambodia before China's clothing industry expands. Then use the purple point (diamond symbol) to shade producer surplus.The small nation of Capralia has an abundant stock of Pashmina goats, a breed that yields high-quality cashmere. Capralia's authorities are still debating whether to open their economy to international trade. The international price of cashmere is $70,000 per metric ton, and the Capralian cashmere sells for $50,000 per metric ton. Place the consumer surplus triangle (CS) and the producer surplus triangle (PS) to correctly depict consumer and producer surplus if Capralia chooses to open its borders to the international cashmere trade. 100 Price (metric ton) 90 80 70 80 50 40 30 20 10 10 0 Capralia's Domestic Cashmere Market 6 domestic supply domestic equilibrium 12 18 24 30 36 42 Quantity (thousands of metric tons) 48 54 60 CS Capralia will import 36,000 metric tons of cashmere. Capralia will export 24.000 metric tons of cashmere. Capralia will not engage in international trade. Capralia will export 12,000 metric tons of cashmere. Capralia will import 24,000 metric tons of cashmere. PS…If Bangladesh is open to international trade of wheat without any restrictions, it will import the full value for your answer, accounting for the horizontal axis units.) Suppose the Bangladeshi government wants to reduce imports to exactly 200,000 bushels of wheat to help domestic producers. A tariff of S per bushel will achieve this. A tariff set at this level would raise $ bushels of wheat. (Note: Be sure to enter in revenue for the Bangladeshi government.
- х 0 150 $1500 $625 $2800 $865 Price of Calculators $27 12 7 2 300 400 Domestic Supply Domestic Demand World Price Quantity of Calculators The figure above shows the domestic market for calculators in Haiti. What is the change in total surplus in Haiti because of trade?A small country imports T-shirts. With free trade at a world price of $10, domestic production is 10 million T-shirts and domestic consumption is 42 million T-shirts. The country's government now decides to impose a quota to limit T-shirt imports to 20 million per year. With the import quota in place, the domestic price rises to $12 per T- shirt and domestic production rises to 15 million T-shirts per year. The quota on T- shirts causes domestic consumers to A) gain $7 million. B) lose $7 million. C) lose $70 million. D) lose $77 millionSuppose Colombia is open to free trade in the world market for soybeans. Because of Colombia’s small size, the demand for and supply of soybeans in Colombia do not affect the world price. The following graph shows the domestic soybeans market in Colombia. The world price of soybeans is PW=$400 per ton.
- (a) Draw an offer curve for Guatemala that shows its offer of coffee for wheat. Include both an elastic and inelastic range in Guatemala’s offer curve. (b) Draw an offer curve for the United States that shows its offer of wheat for coffee. Show this US curve intersecting the Guatemalan offer curve in the inelastic range of the Guatemalan curve. Note the equilibrium terms of trade established. (c) Compare the equilibrium international price you found in question (b) to the autarky prices in Guatemala and in the United States. (You can find a country’s autarky price by drawing a line tangent to the offer curve at the origin.) Explain which country benefits the most from a more favorable movement in its terms of trade when it abandons its autarky position. (d) “The Guatemalan offer curve is likely to be less elastic than the US offer curve.” Justify this claim by explaining what factors determine the elasticity of an offer curve.Kazakhstan is an apple producer, as well as an importer of apples. Suppose the following graph shows Kazakhstan's domestic market for apples, where Sx is the supply curve and Dx is the demand curve. The free trade world price of apples (Pw) is $200 per ton. Suppose Kazakhstan's government restricts imports of apples to 120,000 tons. The world price of apples is not affected by the quota. Analyze the effects of the quota on Kazakhstan's welfare. On the following graph, use the purple line (diamond symbol) to draw the Kazakhstan's supply curve including the quota SK+Q. (Hint: Draw this as a straight line even though this curve should be equivalent to the domestic supply curve below the world price.) Then use the grey line (star symbol) to indicate the new price of apples with a quota of 120,000 apples. PRICE (Dollars perton) 1000 900 800 700 000 500 400 300 200 -- 100 D 0 30 00 90 120 160 Sk 180 210 240 270 300 5x+Q -- Price with Quota Change in PS Quota Rents DWL12. 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)$18
- 4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for soybeans in Guatemala. The world price (Pw) of soybeans is $550 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. 830 Domestic Demand Domestic Supply 795 760 725 O 690 655 620 585 Pw 550 515 480 30 60 06 120 150 180 210 240 270 300 QUANTITY (Tons of soybeans) PRICE (Dollars per ton)The following graph shows the same domestic demand and supply curves for soybeans in Venezuela. Suppose that the Venezuelan government changes its international trade policy to allow the free trade of soybeans. The horizontal black line (PW) represents the world price of soybeans at $350 per ton. Assume that Venezuela's entry into the world market for soybeans has no effect on the world price and 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. Use the green point (triangle symbol) to shade consumer surplus, and then use the purple point (diamond symbol) to shade producer surplus. When Venezuela allows free trade of soybeans, the price of a ton soybeans in Venezuela will be $350. At this price, tons of soybean will be demanded in Venezuela, and tons will be supplied by domestic suppliers. Therefore,…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…
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