Refer to the information in the followina table and answer questions 15 to 18. Quantity demanded domestically 15000 Price Quantity supplied domestically $ 20 20000 17500 20000 22500 25000 17 14 11 8 17500 15000 12500 10000 15 If the market were closed to the international trade, the revenue earned by the domestic producers will be:... 16 If the market was open to international trade and the world price was $11, total revenue of the international trade will be:.... 17 Assume world price $14 includes a tariff of $3 per product. Net revenue of the foreign suppliers after tariff will be:..

Refer to the information in the followina table and answer questions 15 to 18. Quantity demanded domestically 15000 Price Quantity supplied domestically $ 20 20000 17500 20000 22500 25000 17 14 11 8 17500 15000 12500 10000 15 If the market were closed to the international trade, the revenue earned by the domestic producers will be:... 16 If the market was open to international trade and the world price was $11, total revenue of the international trade will be:.... 17 Assume world price $14 includes a tariff of $3 per product. Net revenue of the foreign suppliers after tariff will be:..

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The accompanying table provides data regarding domestic demand and domestic supply of apples in the United States. Price Quantity supplied domestically Quantity demanded domestically (per apple) (millions of pounds per year) (millions of pounds per year) 0.15 6,290 9,730 0.25 7,150 8,870 0.35 8,010 8,010 0.45 8,870 7,150 0.55 9,730 6,290 a. Based on the information provided in the table, move the points to plot the domestic demand and domestic supply curves in the graph. Market for apples 80 75 Consumer surplu... Domestic demar 70 65 Producer surplu... Domestic suppl 60 55 50
Question 6: The graphs below pertain to the US and world markets for solar panels. Answer the questions below by filling in the blanks with the correct numbers and letters and circling the underlined that you judge to be correct. a) Under autarky, the US price of solar panels is $____. Under free trade, the US price of solar panels is $______and the US imports/exports ______ millions of solar panels. The graph above assumes that the US sets a quota of 7 million on the imports of solar panels. b) The above quota increases/decreases the US price of solar panels to $_____and the quota is/is not binding. c) After the quota is imposed, the world price of solar panels is $_______and the US imports ________millions of solar panels. d) Calculate the tariff that would have the same effect on the US price and imports as the quota of 7 million:_______________. e) The quota increases/decreases US consumer surplus by_________,and increases/decreases US producer surplus by____________. f) The quota…
00 7 F. PRICE (Dollars per ton) 4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for soybeans in Honduras. The world price (Pw) of soybeans is $530 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. 2. Domestic Demand Domestic Supply 770 740 710 680 650 620 06 P, 530 MacBook Pro Search or type URL 4. 51 9.
4. Effects of a tariff on international trade The following graph shows the domestic supply of and demand for wheat in New Zealand. The world price (Pw) of wheat is $255 per bushel 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 wheat and that there are no transportation or transaction costs associated with international trade in wheat. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. PRICE (Dollars per bushel) 480 Domestic Demand 455 430 405 380 355 330 305 280 255 230 0 " 30 Domestic Supply 60 90 120 150 180 210 QUANTITY (Bushels of wheat) ++ PW 240 270 300 ?
PRICE 212900 11 8 76 5 4 3 2 Domestic Demand G D B E Domestic Supply World Price+Tarif World Price 1 2 3 4 5 6 7 8 9 10 11 12 QUANTITY Refer to Figure 9-6. The tariff Ⓒa. increases producer surplus by the area C and decreases consumer surplus by the area C + D + E + F. Ob. decreases producer surplus by the area C and decreases consumer surplus by the area C+D+E+F. c. decreases producer surplus by the area C + D and decreases consumer surplus by the area D + E + F. d. increases producer surplus by the area B + C and decrease consumer surplus by the area D+E+F.
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4. Effects of a tariff on international trade The following graph shows the domestic demand for and supply of oranges in Honduras. The world price (Pw) of oranges is $535 per ton and is displayed as a horizontal black line. Throughout the question, assume that all countries under consideration are small, that is, the amount demanded by any one country does not affect the world price of oranges and that there are no transportation or transaction costs associated with international trade in oranges. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. Domestic Demand 775 735 X 695 655 615 535 + 895 PRICE (Dollars per ton) 855 815 575 495 Domestic Supply 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Tons of oranges) PW A tariff set at this level would raise ? If Honduras is open to international trade in oranges without any restrictions, it will import Suppose the Honduran government wants to reduce…
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3. Using the graph to the right, suppose the country opens up to international trade, the world price is $40, and the government institutes a $10 tariff on each unit imported. What is the quantity demanded, quantity produced domestically, quantity imported from abroad, consumer surplus, producer surplus, tariff revenue, and deadweight loss? Price 0 10 20 30 40 50 60 70 80 90 100 0 50 Comestic Supply Domestic Demand 100 150 200 250 300 350 400 450 Quantity 500