1. Using a fully labelled diagram explain what happens when a tariff is added to foreignimports. The importing country is a small country.2. Using the information below, determine which country (Home or Foreign) exportsgood X, how much it exports, and at what price. You are required to use the exportsupply and import demand functions to arrive at your answer.Home: Q 40- 10P,Foreign: Q=50 - 10P,Q = 20 + 10PQ=10+10P3. Using the information in the previous question, find equations for the total worlddemand and total world supply of good X. Solve for equilibrium world price andquantity.

1. Suppose if the country imposes import tariff on the foreign imported good price of the imported…

Answered: 1. Using a fully labelled diagram…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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10 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 €1 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)
1. Given below are two groups' (consumers, c, and a special interest group, i) true demands concerning a tariff on snack foods. Demand against (consumers): wtp($) = 80 + 2t Demand for (special interest): wtp($) = 50 - t Where t is the tariff rate. a. Graph the demand curves and explain how much tariff there will be if there were no free riding and all preferences were fully revealed. b. Now assume that "free riding" plagues the consumer group so that their revealed willingness to pay is given by: wtp($) = 30 + t. What are some causes of the "free riding"? Why is this not likely to happen to the producer group? c. Now what will be the equilibrium tariff rate? Graph this scenario in the same graph. d. Relate the outcome to a partial equilibrium tariff graph.
1. The United States currently imports all of its coffee. The annual demand for coffee by U.S. consumers is given by the demand curve Q = 250 – 10P, where Q is quantity (in millions of pounds) and P is the market price per pound of coffee. World producers can harvest and ship coffee to U.S. distributors at a constant marginal (= average) cost of $8 per pound. U.S. distributors can in turn distribute coffee for a constant $2 per pound. The U.S. coffee market is competitive. Congress is considering a tariff on coffee imports of $2 per pound. a. If there is no tariff, how much do consumers pay for a pound of coffee? What is the quantity demanded? b. If the tariff is imposed, how much will consumers pay for a pound of coffee? What is the quantity demanded? c. Calculate the lost consumer surplus. d. Calculate the tax revenue collected by the government. e. Does the tariff result in a net gain or a net loss to society as a whole?
Here is the rest of the question, thank you There is a range of prices, Pc/Ps in which Home and Foreign will specialize? Show this range in your graph. Call it range E. What levels of Pc/Ps would these countries not produce any coffee at? Label this range H in the graph. Why? Add a relative demand curve to your diagram if Dc/Ds= 1/[Pc/Ps]. That is the relative demand of coffee is the inverse of the relative price of coffee. Label the demand curve you derive RD. Does the equilibrium of RD and RS produce gains from trade for both countries, Home and Foreign? Explain.
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 Price (€ per cap) 10 X 10 20 30 40 50 60 70 80 90 100 9 8 7 5 3 2 1 0 Sd Dd
2. Recently, China placed tariffs on the importation of US soybeans. Assume that the domestic market for soybeans in China is described by the following equations: Demand: P = 115 – 1/15Q Supply: P = 55 + 1/15Q Where P is Yuan per bushel of soybeans and Q is 10 million bushels per year. The world price for soybeans is ¥65/bushel. Graph the soybean market in China showing equilibrium both with no barriers to trade and with a ¥15/bushel tariff. Be sure to fully and clearly label the graph including the Domestic Demand curve, Domestic Supply curve, the World Price, and the Price with tariffs.
1.What is the consumption effect of a tariff? How would you describe it in words,without reference to any diagram or numbers? How would you show it on a diagram, and how would you compute its value?
Tricky question. Consider the diagram below, depicting the United States Market for Airplanes (hundreds of jets on the horizontal axis, and millions of dollars on the vertical axis). Suppose around the world, a 2 (million dollar) tariff is placed on United States Airplanes. What will exports of planes now be (round to one significant digit). Tricky question. Consider the diagram below, depicting the United States Market for Airplanes (hundreds of jets on the horizontal axis, and millions of dollars on the vertical axis). Suppose around the world, a 2 (million dollar) tariff is placed on United States Airplanes. Given exports, about how much will United States producers of airplanes wind up paying in tariffs?
If the United States were to lift existing tariffs on steel imports: Question 32 options: A.the supply of steel shifts to the right and lowers its market price. B.the demand for steel shifts to the right. C.the supply of the imported steel shifts to the left and raises its market price. D.the demand for steel shifts to the left and raises its market price. Please type out the correct step by step answer with proper explanation of the each option given within 40 50 minutes . Will give you thumbs up only for the correct answer. Thank you .
4. Effects of a regional trading arrangement Consider a hypothetical world consisting of only three countries: Liechtenstein, Canada, and France. Each country produces grain. Liechtenstein is a small economy compared to Canada and France and thus cannot influence foreign prices. On the following graph, the supply and demand schedules of Liechtenstein are shown as Such and DLch- Foreign supply schedules of grain are perfectly elastic: Canada is a more efficient supplier of grain than France because its supply price is $1.00 per bushel (Scan), whereas France's supply price is $2.00 per bushel (Sp). ? 10.00 SL 9.00 8.00 7.00 6.00 5.00 4.00 3.00 A 2.00 Scan 1.00 6 12 18 24 30 48 54 60 Calculate the quantity of bushels Liechtenstein imports when the three nations engage in free trade. Enter this value in the first row of the following table. Also indicate which country Liechtenstein imports from. Imports Scenario (Thousands of bushels) Imports from... Free trade With tariff With customs…
In 1932, U.S. manufacturers, which used to enjoy steady relationships with their foreign distributors and export nearly 60% of their output, realized that their exports had fallen to only 20% of total output. Which of the following is the most likely reason for this decrease in exports? O The low quality of U.S. products O war between the United States and Canada O Retaliatory tariffs by trading partners The signing of the General Agreement on Tariffs and Trade (GATT) in 1947 resulted in the adoption of several new trade policies. In the following table, indicate if each of the policies listed was a result of GATT. Then, complete the last column by identifying the means by which each GATT policy was implemented. Policy GATT Policy Implementation Promotion of protectionism Clear and public trade rules Promotion of lower trade barriers Yes v Institution of the WTO Promotion of trade transparency Settling trade disputes In the 1960s, multilateral negotiations called the Uruguay Round…
Assume that you have been hired by an International Organization to be consulted on variousissues that the country Motherland faces. For this exercise, assume that Motherland is a smallagricultural economy. (a) Motherland imports electronics from the United States. The government of Motherland is considering to impose quotas on these electronics imports coming from the United States. Would you recommend it? Explain your answer. In your explanation, distinguish the effect on the consumers of electronics, the domestic producers of electronics and the government. (b)The government of Motherland wants to jump start industrial production. Over time the main objective is to convert this agricultural economy into an industrial nation. On the basis of the experiences of Argentina and Singapore, what policies would you suggest?

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