Explain how a tariff reduction causes an Increase in the equilibrium quantity of imports and a decrease in the equilibrium price . Hint: Consider the Work It Out “Effects of Trade Barriers.”

Question

Want to see more full solutions like this?

Answer 1

Textbook Question

Chapter 21, Problem 1SCQ

Explain how a tariff reduction causes an Increase in the equilibrium quantity of imports and a decrease in the equilibrium price. Hint: Consider the Work It Out “Effects of Trade Barriers.”

Expert Solution & Answer

To determine

The way Tariff reduction leads to a decrease in the equilibrium price and an increase in the equilibrium quantity of imports is to be determined.

Explanation of Solution

As a tariff isdefined as a tax which is imposed by the government on the goods and services that are imported from some other country. It leads to an increase in the price of those goods and services and thus makes those good and services less attractive and makes the imports of goods and services less desirable by the consumers.

So, this is just the reverse or we could say opposite of the work it out feature. As if the tariff the reduced, it will lead to a decrease in the cost of production. Which will be shown by a rightward or we can say a downward shift in the supply curve.

As the tariff is reduced now more quantity will be demanded as the rates are reduced as te cost of production will reduce. So the equilibrium quantity will increase and the equilibrium price will decrease.

Economics Concept Introduction

Tariff: is defined as a tax which is imposed by the government on the goods and services that are imported from some other country. It leads to an increase in the price of those goods and services and thus makes those good and services less attractive and makes the imports of goods and services less desirable by the consumers.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Stealth bank has deposits of $700 million. It holds reserves of $20 million and has purchased government bonds worth $350 million. The banks loans, if sold at current market value, would be worth $600 million. What is the total value of Stealth bank's assets? I believe my calculation of 1.3 billion may be incorrect May I have my work checked please

The following graph shows the downward-sloping demand curve for Oiram-46, a monopolist producing unique magic hats. The graph also shows Oiram-46's marginal revenue curve and its average total cost curve. On the following graph, use the orange point (square symbol) to indicate the profit-maximizing quantity. Use the blue point (circle symbol) to indicate the profit-maximizing price. Use the purple point (diamond symbol) to indicate the average total cost. Use the tan rectangle (dash symbol) to show Oiram-46's total revenue and the grey rectangle (star symbol) to show its total cost. PRICE (Dollars per magic hat) 2 0 20 Marginal Cost 18 ATC 16 Profit-Maximizing Quantity 14 12 Profit-Maximizing Price MC 8 Demand 02 4 6 8 10 12 14 16 18 20 QUANTITY (Magic hats per week) Based on the graph, Oiram-46's profit is equal to 5 TOTAL SCORE: 1/4 Average Total Cost Total Revenue Total Cost Grade Step 2 (to complete this step and unlock the next step)

Explain information regarding the effective interest rates being charged and how much higher the rent-to-own stores’ cash price exceeded the price of the identical item at a reputable retail outlet.

Answer 2

Textbook Question

Chapter 21, Problem 1SCQ

Explain how a tariff reduction causes an Increase in the equilibrium quantity of imports and a decrease in the equilibrium price. Hint: Consider the Work It Out “Effects of Trade Barriers.”

Expert Solution & Answer

To determine

The way Tariff reduction leads to a decrease in the equilibrium price and an increase in the equilibrium quantity of imports is to be determined.

Explanation of Solution

As a tariff isdefined as a tax which is imposed by the government on the goods and services that are imported from some other country. It leads to an increase in the price of those goods and services and thus makes those good and services less attractive and makes the imports of goods and services less desirable by the consumers.

So, this is just the reverse or we could say opposite of the work it out feature. As if the tariff the reduced, it will lead to a decrease in the cost of production. Which will be shown by a rightward or we can say a downward shift in the supply curve.

As the tariff is reduced now more quantity will be demanded as the rates are reduced as te cost of production will reduce. So the equilibrium quantity will increase and the equilibrium price will decrease.

Economics Concept Introduction

Tariff: is defined as a tax which is imposed by the government on the goods and services that are imported from some other country. It leads to an increase in the price of those goods and services and thus makes those good and services less attractive and makes the imports of goods and services less desirable by the consumers.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 21, Problem 1SCQ

Explain how a tariff reduction causes an Increase in the equilibrium quantity of imports and a decrease in the equilibrium price. Hint: Consider the Work It Out “Effects of Trade Barriers.”

Expert Solution & Answer

To determine

The way Tariff reduction leads to a decrease in the equilibrium price and an increase in the equilibrium quantity of imports is to be determined.

Explanation of Solution

As a tariff isdefined as a tax which is imposed by the government on the goods and services that are imported from some other country. It leads to an increase in the price of those goods and services and thus makes those good and services less attractive and makes the imports of goods and services less desirable by the consumers.

So, this is just the reverse or we could say opposite of the work it out feature. As if the tariff the reduced, it will lead to a decrease in the cost of production. Which will be shown by a rightward or we can say a downward shift in the supply curve.

As the tariff is reduced now more quantity will be demanded as the rates are reduced as te cost of production will reduce. So the equilibrium quantity will increase and the equilibrium price will decrease.

Economics Concept Introduction

Tariff: is defined as a tax which is imposed by the government on the goods and services that are imported from some other country. It leads to an increase in the price of those goods and services and thus makes those good and services less attractive and makes the imports of goods and services less desirable by the consumers.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 21, Problem 1SCQ

Explain how a tariff reduction causes an Increase in the equilibrium quantity of imports and a decrease in the equilibrium price. Hint: Consider the Work It Out “Effects of Trade Barriers.”

Expert Solution & Answer

To determine

The way Tariff reduction leads to a decrease in the equilibrium price and an increase in the equilibrium quantity of imports is to be determined.

Explanation of Solution

As a tariff isdefined as a tax which is imposed by the government on the goods and services that are imported from some other country. It leads to an increase in the price of those goods and services and thus makes those good and services less attractive and makes the imports of goods and services less desirable by the consumers.

So, this is just the reverse or we could say opposite of the work it out feature. As if the tariff the reduced, it will lead to a decrease in the cost of production. Which will be shown by a rightward or we can say a downward shift in the supply curve.

As the tariff is reduced now more quantity will be demanded as the rates are reduced as te cost of production will reduce. So the equilibrium quantity will increase and the equilibrium price will decrease.

Economics Concept Introduction

Tariff: is defined as a tax which is imposed by the government on the goods and services that are imported from some other country. It leads to an increase in the price of those goods and services and thus makes those good and services less attractive and makes the imports of goods and services less desirable by the consumers.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

The way Tariff reduction leads to a decrease in the equilibrium price and an increase in the equilibrium quantity of imports is to be determined.

Explanation of Solution

As a tariff isdefined as a tax which is imposed by the government on the goods and services that are imported from some other country. It leads to an increase in the price of those goods and services and thus makes those good and services less attractive and makes the imports of goods and services less desirable by the consumers.

So, this is just the reverse or we could say opposite of the work it out feature. As if the tariff the reduced, it will lead to a decrease in the cost of production. Which will be shown by a rightward or we can say a downward shift in the supply curve.

As the tariff is reduced now more quantity will be demanded as the rates are reduced as te cost of production will reduce. So the equilibrium quantity will increase and the equilibrium price will decrease.

Economics Concept Introduction

Tariff: is defined as a tax which is imposed by the government on the goods and services that are imported from some other country. It leads to an increase in the price of those goods and services and thus makes those good and services less attractive and makes the imports of goods and services less desirable by the consumers.

Answer 8

Expert Solution & Answer

To determine

The way Tariff reduction leads to a decrease in the equilibrium price and an increase in the equilibrium quantity of imports is to be determined.

Explanation of Solution

As a tariff isdefined as a tax which is imposed by the government on the goods and services that are imported from some other country. It leads to an increase in the price of those goods and services and thus makes those good and services less attractive and makes the imports of goods and services less desirable by the consumers.

So, this is just the reverse or we could say opposite of the work it out feature. As if the tariff the reduced, it will lead to a decrease in the cost of production. Which will be shown by a rightward or we can say a downward shift in the supply curve.

As the tariff is reduced now more quantity will be demanded as the rates are reduced as te cost of production will reduce. So the equilibrium quantity will increase and the equilibrium price will decrease.

Economics Concept Introduction

Tariff: is defined as a tax which is imposed by the government on the goods and services that are imported from some other country. It leads to an increase in the price of those goods and services and thus makes those good and services less attractive and makes the imports of goods and services less desirable by the consumers.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

The way Tariff reduction leads to a decrease in the equilibrium price and an increase in the equilibrium quantity of imports is to be determined.

Answer 12

Explanation of Solution

As a tariff isdefined as a tax which is imposed by the government on the goods and services that are imported from some other country. It leads to an increase in the price of those goods and services and thus makes those good and services less attractive and makes the imports of goods and services less desirable by the consumers.

So, this is just the reverse or we could say opposite of the work it out feature. As if the tariff the reduced, it will lead to a decrease in the cost of production. Which will be shown by a rightward or we can say a downward shift in the supply curve.

As the tariff is reduced now more quantity will be demanded as the rates are reduced as te cost of production will reduce. So the equilibrium quantity will increase and the equilibrium price will decrease.

Answer 13

Economics Concept Introduction

Tariff: is defined as a tax which is imposed by the government on the goods and services that are imported from some other country. It leads to an increase in the price of those goods and services and thus makes those good and services less attractive and makes the imports of goods and services less desirable by the consumers.

Answer 14

Ch. 21 - Explain how a tariff reduction causes an Increase...Ch. 21 - Explain how a subsidy on agricultural goods like...Ch. 21 - Explain how trade barriers save jobs in protected...Ch. 21 - Explain how trade barriers raise wages in...Ch. 21 - How does international trade affect working...Ch. 21 - Do the jobs for workers in low-income countries...Ch. 21 - How do trade barriers affect the average Income...Ch. 21 - How does the cost of saving jobs in protected...Ch. 21 - Explain how predatory pricing could be a...Ch. 21 - Why do low-income countries like Brazil, Egypt, or...

Explain how a tariff reduction causes an Increase in the equilibrium quantity of imports and a decrease in the equilibrium price . Hint: Consider the Work It Out “Effects of Trade Barriers.”

Explanation of Solution

Want to see more full solutions like this?

Chapter 21 Solutions

Additional Business Textbook Solutions