The diagram below shows a situation where the country would export the good.Price ofPencilSharpeners$24DomesticSupplyWorldPrice1612DomesticDemand4Quantity ofPencilSharpeners200300450a.) How much will it export if free trade is allowed?pencil sharpenersb.) If the country goes from autarky to free trade the producer surplus will increase by $

Without free trade, the domestic price os 12 $ and quantity traded is 300 units. With free trade,…

Answered: The diagram below shows a situation…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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if the world price is 5 dollars and import quota 300. The price after the quota will be ? I dont understand how to read this graph and make real sense the data and how it is affected by the tax. I struggle with the formulas needed to make conclusions about the information
I have no idea what the answer is.
Price of Rice $/ton €140 €120 €100 с a b rise by 40 units. 80 120 160 200 240 300 Quantity of Rice rise by 40 units. e The graph above reflects the market for rice in Spain. If the world price is 100euros and the government imposes a 20% tax on imports the amount of imports will S drop by 40 units. drop by 80 units.
In the domestic market with no trade, the equilibrium price is _____ and the quantity traded is ____ units a. $90, 1,150 b. $60, 650 c. $60, 1,150 d. $40, 1,800
True or False: With the export subsidy, this country will start importing steel from abroad. Under the export subsidy, consumer surplus is$______and producer surplus is$_______
A trade restriction on the quantity of a good that an exporting country is allowed to export to another country is known as? a. Voluntary export restraint b. Export subsidy c. Quota d. Sanction
Note: Hand written solution should be avoided.
A country moves from a situation of no trade to a situation where it imports a good. Which of the following does not occur in the market for this good in the importing country? A. Deadweight loss decreases. B. Total surplus increases. C. Consumer surplus increases. D. Producer surplus decreases. E. Workers in the domestic industry lose.
Figure: Tariffs Price $90 88 150 O $90; 1,150 O $60; 650 O $60, 1,150 O $40; 1,800 Domestic spply World supply tarif 1150 1550 1800 In the domestic market with international trade and no tariffs, the price is Domenic demand Quantity and the quantity purchased in the United States is units.
Economics When a new tariff is placed on imported furniture, which of the following is expected to happen in the domestic market for furniture, all else being equal? a.Consumer surplus and producer surplus both increase. b.Consumer surplus decreases and producer surplus increases. c.Consumer surplus and producer surplus both decrease. d.Consumer surplus increases and producer surplus decreases.
2. According to the graph, answer the following questions about Pencil Sharpeners. Price of Pencil Sharpeners $24 16 12 4 Domestic Supply World Price Domestic Demand 0 200 300 450 Quantity of Pencil Sharpeners a. What is the equilibrium price of Pencil Sharpeners before trade? b. What is the equilibrium quantity of Pencil Sharpeners before trade? c. What is the price of Pencil Sharpeners after trade is allowed? d. What is the quantity of Pencil Sharpeners exported? e. What is the amount of consumer surplus before trade? f. What is the amount of consumer surplus after trade? g. What is the amount of producer surplus before trade? h. What is the amount of producer surplus after trade? i. What is the amount of total surplus before trade? j. What is the amount of total surplus after trade? k. What is the change in total surplus because of trade?
A4

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