The figure shows a country’s domestic supply and demand curves for a good, as well as the world price, Pw, for the good that it faces, as a small country, on the world market. Initially, the country is exporting X1 units of that good at that price. Suppose that producers in this industry lobby policy makers to provide them with some sort of assistance to help them export even more. Policy makers are considering an export subsidy. What area represents the cost of this subsidy to the government (taxpayers)? Group of answer choices b+c+d a+b+c+d c+d a+b+c

Q: Demand: P=420-60Qd Supply: P=2+20QS a. With free trade and an international price of $60 per barrel,…

A: Demand : P = 420 - 60Q 60Q = (420-P) Q = (420-P)/60   Supply : P = 2 + 20Q 20Q = (P-2)  Q = (P-2)/20…

Q: Which of the choices describes how the effects of import tariffs and import quotas are different?…

A: Trade policies like import tariffs and import quotas work to limit imports while defending homegrown…

Q: domestic consumption (without tariff) import (with tariff, T=10) Deadweight loss domestic production…

A: ​The impact of tariffs on a small country depends on specific circumstances, including the structure…

Q: The following graph shows the domestic demand for and supply of oranges in Zambia. The world price…

A: In an open economy, consumers and producers have the incentive to earn more from making economic…

Q: Explain the possible welfare impact of restoring the import tariff for surgical masks. Should the…

A: Welfare impact: It refers to the impact of the government policy on the economy. It takes into…

Q: tes. Unlike Motherland, the United States is a large industrial country Motherland imports…

A: The gravity model suggests that relative economic size tends to attract the countries in order to…

Q: Assuming that the country is small, compare the welfare effects of placing a tariff on an import…

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: Suppose the government of the U.S. wants to protect the domestic sugar industry by restricting sugar…

A: Supply is given as Q = P Demand is given as Q = 8 – P World price of sugar is $2/ lb.   When there…

Q: Suppose the following diagram shows the domestic supply and demand curve for a good. Assume that the…

A: Demand curve shows the quantity demanded at different prices whereas supply curve shows the quantity…

Q: a) What is a tariff ? Does a tariff have a result from an import quota? b) Suppose a tariff allowed…

A: Hey, Thank you for the question. According to our policy we can only answer 1 question per session.…

Q: Export subsidies result in a welfare loss to the home country due to the protective and consumption…

A: An export subsidy is a payment to the exporting firm by the government of the exporting country to…

Q: What benefits do export quotas provide? In your opinion, what does the U.S produce that would…

A: Export quotas are restrictions placed by the government on the volume of a specific commodity or…

Q: When a large country imposes a tariff for a certain good it imports,it often affects the foreign…

A: In the international market, large and small, all type of countries enter to make trade according to…

Q: Suppose there are 2 countries that have the following supply and demand equations in autarky Country…

A: We are going to find the answer for this question using international trade theory,

Q: Explain why high tariffs have a negative impact on a country's economy.

A: The objective of this question is to understand the negative impacts of high tariffs on a country's…

Q: Explain why a quota may result in lower total surplus in the home country than a tariff, even if…

A: A tariff is a percentage of the product's worth that the importer is required to pay. A quota is a…

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: Consider a small country where the domestic market for sandals is described by the following demand…

A: International trade: International trade can be defined as the transfer of products, and services…

Q: The following graph shows the domestic demand for and supply of oranges in Zambia. The world price…

A: At the international level, countries engage in trade with each other at the world price. One…

Q: with the tariff and the purple triangle (diamond symbols) to show the producer surplus with the…

A: Consumer surplus is the area below demand curve and above supply curve. Producer surplus is the area…

Q: Consider a small country where the domestic market for sandals is described by the following demand…

A: Gains from trade are the net benefits to economic agents from allowing them to engage in more…

Q: If Honduras is open to international trade in oranges without any restrictions, it will import…

A: Domestic demand and supply refer to the quantity of goods and services that consumers and producers…

Q: The following graph shows the domestic supply of and demand for soybeans in Guatemala. The world…

A: World price=$520 At this price, Domestic Demand : 90 tons Domestic Supply : 10 tons A good is…

Q: In a small, open economy, domestic demand for calculators is given by P = 55.9 – Q, domestic supply…

A: Answer-

Q: The figure shows a country’s domestic supply and demand curves for a good, as well as the world…

A: Producer surplus is the area above the supply curve and below the price. It is the difference…

Q: Romania and Georgia both produce shmoos, and are the only producers of shimoos. The market demand…

A: Global economics encompasses the investigation and evaluation of cross-national economic,…

Q: Suppose Russia can produce automobiles relatively cheaply, but they have poor gas mileage and create…

A: A tariff is a government-imposed tax on products and services imported from other nations that…

Q: Consider a small open economy country that produces cars. The world price of cars is less than the…

A: An economy engages in international trade on the basis of the principle of comparative advantage. A…

Q: Suppose that the United States currently both produces kumquats and imports them. The U.S.…

A: International trade:International trade means buying and selling of goods and services from outside…

Q: Market demand for steel in Econland is given by the domestic demand function of QD-40-4P. The…

A: Domestic demand function: QD=40−4PDomestic supply equation: QS=PThe world price of steel is $4 per…

Q: Exporting countries Which of the following will be true, everything else remaining constant, for a…

A: Goods and services produced in one country and sold to consumers in another are known as exports.…

Q: Small Island Developing States (SIDS), particularly our Caribbean islands, are normally accused by…

A: Since you have asked multiple questions, we have answered the first question for you. If you want…

Q: Suppose that a country has a demand function for a laptop given by P = 30 – Qa and supply function…

A: Before the trade, the domestic output and price will be determined such that demand is equals to the…

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: uppose a per-unit tariff of $10 is imposed on imported cell phones. After the tariff: - The…

A: The following problem in relation to imposition of tariff has been explained as follows:

Q: Consider a small country. The domestic (home) demand is Qd = 120−3P and supply is Qs = 2P −20 where…

A: Since you have posted multiple sub parts , we will provide solutions to the first three sub parts…

Q: Belgium is a small country which produces and consumes gooseberries. The quantity demand of…

A: Given:P=rs.15Qd=120-4PQd=120-4(15)Qd=120-60Qd=60