The following figure represents a small country imposing a tariff against the imports of a good. The two horizontal line are the world price(pw) and the world price with tariffs (pw+t). The other two curves are the Home Supply Curve(upward slopping) and the Home Demand Curve(downward slopping). About this picture, what is true? 120 100 Price 60 80 60 00 40 30 20 Home Country 10 0 40 80 120 140 160 Demand Curve Supply Curve Pw Pw+t

Refer to the diagram below, where Sd and Dd are the domestic supply and demand for a product, Pt is the domestic price with a tariff, and Pc is the world price of that product. Open this image in a program or approximate this drawing on paper and color in the area that represents gains from trade if the country imposes a tariff .

The figure below shows the US domestic supply and demand for CD-ROM drives. The world price is $15 (per million CD-ROM drives). Price ($) 25 15 0 $25 b. $15 $10 3 a. U.S. market C. d. $0 6 9 SU.S. 12 Millions of CD-ROM drives Suppose the US implements a tariff on imports of CD-ROM drives. After the tariff is implemented, the US imports 3 million CD- ROM drives. What is the amount of the tariff? DU.S. Hint: What does it mean/ look like on the graph for the US to import 3 million units? Q

The figure below shows the hypothetical domestic supply and demand for baseball caps in the country of Spain. Domestic Supply and Demand for Baseball Caps Spain 10 Sa 8 X 2 1 0 10 20 30 40 50 60 70 80 90 100 Baseball caps (thousands per month) Suppose that the world price of baseball caps is €1 and there are no Import restrictions on this product. Assume that Spanish consumers are indifferent between domestic and Imported baseball caps. Instructions: Enter your answers as whole numbers. a. What quantity of baseball caps will domestic suppliers supply to domestic consumers? thousand b. What quantity of baseball caps will be imported? thousand Now suppose a tariff of €3 is levied against each Imported baseball cap. c. After the tariff is Implemented, what quantity of baseball caps will domestic suppliers supply to domestic consumers? thousand d. After the tariff Is Implemented, what quantity of baseball caps will be imported? thousand Price (€ per cap) 65 3₂

5. Welfare effects of a tariff in a small còuntry Suppose Burundi is open to free trade in the world market for malze. Because of Burundl's small size, the demand for and supply of malze in Burundi do not affect the world price. The followling graph shows the domestic malze market in Burundi. The world price of malze Is Pw =$350 per ton. On the following graph, use the green triangle (triangle symbols) to shade the area representing consumer's surplus (CS) when the economy is at the free-trade equllibrium. Then, use the purple triangle (diamond symbols) to shade the area representing producers' surplus (PS). 710 Domestic Demand Domestic Supply 670 CS 630 590 550 PS 510 W 470 430 390 350 310 3 9 12 15 18 21 24 27 30 QUANTITY (Thousands of tons of maize) If Burundi allows international trade in the market for maize, it will import tons of maize. Now suppose the Burundian government decides to impose a tariff of $40 on each imported ton of maize. After the tariff, the price Burundian…

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

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 loss to the consumers from this subsidy? Group of answer choices a a+b a+b+c zero (consumers do not lose)

The figure given below shows the market for computers in the U.S. The domestic price line inclusive of the tariff lies above the world price line. Dd and Sd are the domestic demand and supply curves of computers respectively. 1) find the change in consumer surplus, producer surplus, and government revenue after the tariff is imposed. What is the net gain/ loss for the country?

Assume that the weekly domestic demand for petroleum is represented by the equation: P= -2.25Q + 600.  And, the weekly domestic supply of petroleum is represented by the equation: P= 1.5Q + 25.  Assume also, that the world price of petroleum is $200. What is the domestic autarky price and quantity when this economy is closed to trade? What would be the total quantity of petroleum demanded when the economy is open to international trade? What would be the volume of imports when the economy is open to trade? What is the import dependency ratio in this economy when it is open for international trade in petroleum?

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