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values given this increase in demand. Country Aniva (tariff = $2,000) Kartaly (quota = 40 million televisions) True Price (Dollars) False Quantity Demanded at New Price (Millions of televisions) True or False: The increase in demand hurts domestic producers but helps domestic consumers in Kartaly. Imports (Millions of televisions) Which of the following explain why a tariff is a A tariff prevents domestic consumers from buying imports even if they are willing to pay a higher price. Importers who are able to pay the tariff duty will get the product. An exporter can try to cut costs or slash profit margins. restrictive trade barrier than an equivalent quota. Check all that apply.

values given this increase in demand. Country Aniva (tariff = $2,000) Kartaly (quota = 40 million televisions) True Price (Dollars) False Quantity Demanded at New Price (Millions of televisions) True or False: The increase in demand hurts domestic producers but helps domestic consumers in Kartaly. Imports (Millions of televisions) Which of the following explain why a tariff is a A tariff prevents domestic consumers from buying imports even if they are willing to pay a higher price. Importers who are able to pay the tariff duty will get the product. An exporter can try to cut costs or slash profit margins. restrictive trade barrier than an equivalent quota. Check all that apply.

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter33: International Trade
Section: Chapter Questions
Problem 35P: If trade increases world GDP by 1 per year, what is the global impact of this increase over 10...
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4. A graphical comparison of tariffs and quotas Aniva and kartaly are small countries that protect their economic growth from rapidly advancing globalization by limiting the import of televisions to 40 million. To this end, each country imposes a different type of trade barrier when the world price (Pw) is $2,000. In Aniva, the government decides to impose a tariff of $2,000 per television; in Kartaly, the government implements a quota of 40 million televisions. Assume that Aniva and Kartaly have identical domestic demand (Do) and supply (S) curves for televisions as shown on the following graph. Under these conditions, the price of televisions is $4,000 per television in each country. PRICE (Dollars per television) 10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 P 20 D₁ O True 0 10 20 30 40 50 60 70 QUANTITY (Millions of televisions) Country Aniva (tariff = $2,000) Kartaly (quota = 40 million televisions) O False ☆ ☆ Suppose that in both countries, demand for televisions rises from Do to D₁. Assuming Aniva keeps the tariff at $2,000 per television, complete the first row of the following table by calculating each of the values given this increase in demand. Assuming Kartaly maintains a quota of 40 million televisions, complete the second row of the table by calculating each of the values given this increase in demand. S H 80 90 100 Price (Dollars) Which of the following explain why a tariff is a (?) True or False: The increase in demand hurts domestic producers but helps domestic consumers in Kartaly. Quantity Demanded at New Price (Millions of televisions) Imports (Millions of televisions) ✓ restrictive trade barrier than an equivalent quota. Check all that apply. A tariff prevents domestic consumers from buying imports even if they are willing to pay a higher price. □ Importers who are able to pay the tariff duty will get the product. An exporter can try to cut costs or slash profit margins.
Transcribed Image Text:4. A graphical comparison of tariffs and quotas Aniva and kartaly are small countries that protect their economic growth from rapidly advancing globalization by limiting the import of televisions to 40 million. To this end, each country imposes a different type of trade barrier when the world price (Pw) is $2,000. In Aniva, the government decides to impose a tariff of $2,000 per television; in Kartaly, the government implements a quota of 40 million televisions. Assume that Aniva and Kartaly have identical domestic demand (Do) and supply (S) curves for televisions as shown on the following graph. Under these conditions, the price of televisions is $4,000 per television in each country. PRICE (Dollars per television) 10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 P 20 D₁ O True 0 10 20 30 40 50 60 70 QUANTITY (Millions of televisions) Country Aniva (tariff = $2,000) Kartaly (quota = 40 million televisions) O False ☆ ☆ Suppose that in both countries, demand for televisions rises from Do to D₁. Assuming Aniva keeps the tariff at $2,000 per television, complete the first row of the following table by calculating each of the values given this increase in demand. Assuming Kartaly maintains a quota of 40 million televisions, complete the second row of the table by calculating each of the values given this increase in demand. S H 80 90 100 Price (Dollars) Which of the following explain why a tariff is a (?) True or False: The increase in demand hurts domestic producers but helps domestic consumers in Kartaly. Quantity Demanded at New Price (Millions of televisions) Imports (Millions of televisions) ✓ restrictive trade barrier than an equivalent quota. Check all that apply. A tariff prevents domestic consumers from buying imports even if they are willing to pay a higher price. □ Importers who are able to pay the tariff duty will get the product. An exporter can try to cut costs or slash profit margins.
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