EBK STUDY GUIDE FOR MANKIW'S PRINCIPLES
7th Edition
ISBN: 8220103455312
Author: Mankiw
Publisher: Cengage Learning US
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Question
Chapter 9, Problem 7PA
Sub part (a):
To determine
Importing and the effects of importing to the country.
Sub part (b):
To determine
Importing and the effects of importing to the country.
Sub part (c):
To determine
Importing and the effects of importing to the country.
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Students have asked these similar questions
The figure below shows the U.S. market for imported wine. For simplicity, we
consider export supply curves to be flat. Chilean wine is available for $480 per
barrel and French wine is available for $420 per barrel.
Price per barrel
$500
$480
$420
10
a.
$480
b. $560
C.
$500
d. $420
15
a
Chilean price
French price
US demand for imported wine
Quantity
(millions of barrels per year)
Suppose the United States has a tariff of $80 per barrel on imported wine.
Then, the United States joins a free-trade area with Chile. At what price per
barrel will the imported wines be purchased by the U.S. consumers?
Exporting countries
Which of the following will be true, everything else remaining constant, for a country that exports some good?
a)The greater the price elasticity of supply for the good in the exporting country, the greater the volume of exports.
b) The more that consumers in the exporting country respond to a change in price, the greater will be the gains from trade.
b) The smaller the price elasticity of demand and supply in the exporting country, the greater the gains from trade.
c) Some domestic suppliers will lose surplus while others will gain surplus.
Choose the statements that match the question and briefly explain your reasoning to understand the question better. Thankyou.
Price
10
Price at which good sells = 7.25
Price at which good sells = 6
Marginal cost of producing
amount traded = 4
Marginal cost of producing
amount traded = 2.75
Price
Price
gap=t gap=t
4,000 6,000
Quantity
Figure 18.3 The market for cars: Price gaps reflect trade costs.
The exporter's
supply curve
The consumer's
demand curve
15,000
Chapter 9 Solutions
EBK STUDY GUIDE FOR MANKIW'S PRINCIPLES
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