Please answer everything in the photos. Use the following graph to show the effects of the $30 tariff.Use the black line (plus symbol) to indicate the world price plus the tariff. Then, use the green points (triangle symbols) to show the consumer surpluswith the tariff and the purple triangle (diamond symbols) to show the producer surplus with the tariff. Lastly, use the orange quadrilateral (squaresymbols) to shade the area representing government revenue received from the tariff and the tan points (rectangle symbols) to shade the areasrepresenting deadweight loss (DWL) caused by the tariff.PRICE (Dollars perton)480 Domestic Demand430400S370340310280250220190100025Consumer SurplusProducer SurplusGovernment Revenue50 75 100 125 150 175 200 225 250QUANTITY (Tons of soybeans)Domestic SupplyW0byby $➡+World Price Plus TariffBased on your analysis, as a result of the tariff, Zambia's consumer surplusand the government collects $Complete the following table to summarize your results from the previous two graphs.With Free Trade(Dollars)With a Tariff(Dollars)CSPSGovernment RevenueDWLby Sproducer surplusin revenue. Therefore, the net welfare effect is a*of Suppose Zambia is open to free trade in the world market for soybeans. Since Zambia is small relative to the international market, the demand forand supply of soybeans in Zambia have no impact on the world price. The following graph shows the domestic market for soybeans in Zambia. Theworld price of a ton of soybeans is Pw= $250.On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer surplus (CS) when the economy is at thefree-trade equilibrium. Then, use the purple triangle (diamond symbols) to shade the area representing producer surplus (PS).?PRICE (Dollars perton)460430400370340310280 -2502201901600Domestic Demand25Domestic SupplyP.SAC50 75 100 125 150 175 200 225 250QUANTITY (Tons of soybeans)+CSPSBecause Zambia participates in international trade in the market for soybeans, it will importtons of soybeans.Now suppose the Zambian government decides to impose a tariff of $30 on each imported ton of soybeans. Under the tariff, the price Zambianconsumers pay for a ton of soybeans becomes $and Zambia will importtons of soybeans.

In the normal way, deadweight loss is often an outcome of government policies such as price floors,…

se the black line (plus symbol) to indicate the world price plus the tariff. Then, use the green points (triangle symbols) to show the consumer s th the tariff and the purple triangle (diamond symbols) to show the producer surplus with the tariff. Lastly, use the orange quadrilateral (square -mbols) to shade the area representing government revenue received from the tariff and the tan points (rectangle symbols) to shade the areas presenting deadweight loss (DWL) caused by the tariff. PRICE (Dollars perton) 480 430 400 370 340 310 280 250 220 100 100 0 Domestic Demand 25 50 Domestic Supply + 75 100 125 150 175 QUANTITY (Tons of soybeans) PW 200 225 250 ➡+ World Price Plus Tariff CS 4·* 4+ PS Government Revenue DWL

se the black line (plus symbol) to indicate the world price plus the tariff. Then, use the green points (triangle symbols) to show the consumer s th the tariff and the purple triangle (diamond symbols) to show the producer surplus with the tariff. Lastly, use the orange quadrilateral (square -mbols) to shade the area representing government revenue received from the tariff and the tan points (rectangle symbols) to shade the areas presenting deadweight loss (DWL) caused by the tariff. PRICE (Dollars perton) 480 430 400 370 340 310 280 250 220 100 100 0 Domestic Demand 25 50 Domestic Supply + 75 100 125 150 175 QUANTITY (Tons of soybeans) PW 200 225 250 ➡+ World Price Plus Tariff CS 4·* 4+ PS Government Revenue DWL

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 graph to the right shows the supply and demand for Japanese-made automobiles in the United States. Assume that Japanese-made and U.S.-made automobiles are of the same quality and are considered to be perfect substitutes. Suppose that the U.S. government imposes a tariff on Japanese-made automobiles. 1.) Using the line drawing tool, show the effect on the market for Japanese-made automobiles. Properly label your line. 2.) Using the point drawing tool, identify the new equilibrium price and quantity. Label it 'E₂'. Carefully follow the instructions above, and only draw the required objects. As a result of the tariff, the price of Japanese-made cars rises and the quantity falls. In the market for American-made cars, there will be and thus the price of American-made cars will equilibrium quantity will and the Price per Automobile ($) S Japanese-made Automobiles (thousands)
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Recently, China placed tariffs on the importation of US soybeans. Assume that the domestic market for soybeans in China is described by the following equations: Demand: P = 11.5 – Q Supply: P = 5.5 + Q Price is in 10 Yuan (¥) per bushel of soybeans and the units for Quantity are 100 million bushels per year. This is to make graphing simpler. This does NOT mean that the price is 10 and quantity is 100. Rather it means that if the price was 40¥ and the quantity was 7,500,000,000 bushels, this would plot as 4 and 7.5 respectively. The world price for soybeans is ¥65/bushel (this would graph as 6.5). Graph the soybean market in China showing equilibrium both with no barriers to trade and with a ¥15/bushel tariff. Be sure to fully and clearly label the graph including: Domestic Demand curve (D), Domestic Supply curve (S), the World Price (WP), and the Price with tariffs (PT).
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The following graph shows the market for wheat in the European Union (EU). The world price of wheat is $4.00 per bushel, so Sworld represents the world supply assuming that the EU cannot affect the world price of wheat. To support the agricultural sector, the EU guarantees a certain price for the farmers by imposing a variable levy of $4.00 per bushel to limit the import of wheat. On the graph, use the purple line (diamond symbol) to show the support price the farmers receive due to the variable $4.00 levy. Note: Select and drag the line segment from the palette to the graph. Then select a point on the line segment and drag it to its desired position. PRICE (Dollars per bushel) 20.00 18.00 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0 DEU SEU SWorld 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 WHEAT (Bushels) Before the levy After the levy Support Price SWorld New Fill in the following table by entering the quantities for production, consumption, and imports of wheat in the EU…
Suppose Zambia is open to free trade in the world market for soybeans. Since Zambia is small relative to the international market, the demand for and supply of soybeans in Zambia have no impact on the world price. The following graph shows the domestic market for soybeans in Zambia. The world price of a ton of soybeans is PW = $250. Use the following graph to show the effects of the $ 10 tariff. Use the black line (plus symbol) to indicate the world price plus the tariff. Then, use the green points (triangle symbols) to show the consumer surplus with the tariff and the purple triangle (diamond symbols) to show the producer surplus with the tariff. Lastly, use the orange quadrilateral (square symbols) to shade the area representing government revenue received from the tariff and the tan points (rectangle symbols) to shade the areas representing deadweight loss (DWL) caused by the tariff.
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