Explain briefly but clearly if the following statement is true, false or uncertain: The common equilibrium relative price of the two goods after trade can not lie outside the range bonded by the autarky (before trade) price ratios in the two countries
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Explain briefly but clearly if the following statement is true, false or uncertain: The common
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- When China's clothing industry expands, the increase in world supply lowers the world price of clothing. Consider the effects this has on both an importer and an exporter of clothing. Suppose the following graph represents the market for clothing in Cambodia prior to the expansion of China's clothing industry. Cambodia is an of clothing because the world price is the domestic equilibrium price. Note: You will have to use green points (triangle symbol) and purple points (diamond symbol) to shade the consumer and producer surplus areas on the following graphs. There are two green points and two purple points per graph. Use either one point of both to most accurately indicate the areas. For example, if indicating the consumer surplus requires only one green point, leave the second one on the palette. Use the green point (triangle symbol) to shade consumer surplus in Cambodia before China's clothing industry expands. Then use the purple point (diamond symbol) to shade…The following graph shows the domestic demand for and supply of limes in Bangladesh. The world price (Pw) of limes is $800 per ton and is displayed as a horizontal black line. Throughout the question, assume that all countries under consideration are small, that is, the amount demanded by any one country does not affect the world price of limes and that there are no transportation or transaction costs associated with international trade in limes. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. PRICE (Dollars per ton) PRICE (Dollars per ton) 1120 1080 1040 1000 960 9:20 880 640 800 760 720 960 920 880 840 800 760 720 0 0 Domestic Demand 10 I 20 T I 10 20 Domestic Supply 70 60 50 30 40 QUANTITY (Tons of limes). 30 40 50 60 70 QUANTITY (Tons of limes) 80 A tariff set at this level would raise $ 80 90 100 PW 90 100 If Bangladesh is open to international trade in limes without any restrictions, it will…The following graph shows the domestic demand for and supply of oranges in Honduras. The world price (Pw) of oranges is $550 per ton and is displayed as a horizontal black line. Throughout the question, assume that all countries under consideration are small, that is, the amount demanded by any one country does not affect the world price of oranges and that there are no transportation or transaction costs associated with international trade in oranges. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. PRICE (Dollars per ton) 865 830 795 760 725 690 655 620 585 550 515 0 Domestic Demand 40 80 Domestic Supply PW 120 160 200 240 280 320 360 400 QUANTITY (Tons of oranges) ?
- If Guatemala is open to international trade in oranges without any restrictions, it will import Suppose the Guatemalan government wants to reduce imports to exactly 120 tons of oranges to help domestic producers. A tariff of S will achieve this. A tariff set at this level would raise S tons of oranges. in revenue for the Guatemalan government. per tonThe following graph shows the domestic demand for and supply of oranges in Guatemala. The world price (Pw) of oranges is $520 per ton and is displayed as a horizontal black line. Throughout the question, assume that all countries under consideration are small, that is, the amount demanded by any one country does not affect the world price of oranges and that there are no transportation or transaction costs associated with international trade in oranges. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. PRICE (Dollars per ton) 835 800 765 730 695 660 625 590 555 520 485 Domestic Demand 0 40 Domestic Supply P₁ W 80 120 160 200 240 280 320 360 400 QUANTITY (Tons of oranges) A tariff set at this level would raise $ ? If Guatemala is open to international trade in oranges without any restrictions, it will import Suppose the Guatemalan government wants to reduce imports to exactly 80 tons of oranges to help…The following graph shows the domestic supply of and demand for maize in Bangladesh. The world price (Pw) of maize is $255 per ton and is represented by the horizontal black line. Throughout the question, assume that the amount demanded by any one country does not affect the world price of maize and that there are no transportation or transaction costs associated with international trade in maize. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. 455 Domestic Demand Domestic Supply 430 405 380 355 330 305 280 Pw 255 230 205 200 250 300 350 400 450 500 QUANTITY (Tons of maize) If Bangladesh is open to international trade in maize without any restrictions, it will import 300 tons of maize. Suppose the Bangladeshi government wants to reduce imports to exactly 100 tons of maize to help domestic producers. A tariff of $ per ton will achieve this. A tariff set at this level would raise $ in revenue for the…
- Price of Clothing Market for Clothing in Vietnam Domestic Demand Quantity of Clothing Domestic Supply World Price A Consumer Surplus Producer SurplusThe following graph shows the domestic demand for and supply of oranges in Guatemala. The world price (Pw) of oranges is $550 per ton and is displayed as a horizontal black line. Throughout the question, assume that all countries under consideration are small, that is, the amount demanded by any one country does not affect the world price of oranges and that there are no transportation or transaction costs associated with International trade in oranges. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. PRICE (Dollars per ton) 820 790 760 730 700 670 640 610 580 550 520 0 Domestic Demand 1 Domestic Supply PW 30 60 90 120 150 180 210 240 270 300 QUANTITY (Tons of oranges) A tariff set at this level would raise (~.) ? If Guatemala is open to International trade In oranges without any restrictions, it will import Suppose the Guatemalan government wants to reduce imports to exactly 60 tons of oranges to help…Two countries, Home (H) and Foreign (F) trade agricultural and manufacturing goods (A and M, respectively). Production of either good requires skilled and unskilled labor. Unskilled workers can freely move from one sector to another, while skilled workers cannot. Identify mobile and industry-specific factors of production (b) Suppose Home is relatively more productive in agriculture than Foreign. Draw two diagrams, one for H one for F, which illustrate no-trade equilibrium in each county. Compare relative price of agricultural goods in two countries.
- The following graph shows the domestic demand for and supply of oranges in Guatemala. The world price (Pw) of oranges is $540 per ton and is displayed as a horizontal black line. Throughout the question, assume that all countries under consideration are small, that is, the amount demanded by any one country does not affect the world price of oranges and that there are no transportation or transaction costs associated with international trade in oranges. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. PRICE (Dollars per ton) 990 940 890 840 790 740 690 640 590 540 490 Domestic Demand 50, 540 +➡+ I I 0 50 Domestic Supply PW 100 150 200 250 300 350 400 450 500 QUANTITY (Tons of oranges) A tariff set at this level would raise $ ? If Guatemala is open to international trade in oranges without any restrictions, it will import Suppose the Guatemalan government wants to reduce imports to exactly 100 tons of…The following graph shows the domestic supply of and demand for maize in Panama. The world price (Pw) of maize is $250 per ton and is represented by the horizontal black line. Throughout the question, assume that the amount demanded by any one country does not affect the world price of maize and that there are no transportation or transaction costs associated with international trade in maize. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. PRICE (Dollars per ton) 475 450 425 400 375 350 325 300 275 250 225 Domestic Demand 0 10 20 Domestic Supply 30 40 50 60 70 QUANTITY (Tans of maize) PW A tariff set at this level would raise $ 80 90 100 If Panama is open to international trade in maize without any restrictions, it will import Suppose the Panamanian government wants to reduce imports to exactly 20 tons of maize to help domestic producers. A tariff of $ achieve this. tons of maize. in revenue for the…The following graph shows the domestic demand for and supply of lemons in Guatemala. The world price (Pw) of lemons is $260 per ton and is displayed as a horizontal black line. Throughout the question, assume that all countries under consideration are small, that is, the amount demanded by any one country does not affect the world price of lemons and that there are no transportation or transaction costs associated with international trade in lemons. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. PRICE (Dollars per ton) 460 Domestic Demand Domestic Supply 435 410 385 360 335 285 260 235 PW 210 0 10 20 30 40 50 60 70 QUANTITY (Tons of lemons) 80 90 100 If Guatemala is open to international trade in lemons without any restrictions, it will import tons of lemons. Suppose the Guatemalan government wants to reduce imports to exactly 20 tons of lemons to help domestic producers. A tariff of $ will achieve…