EconomicsAniva and Kartaly are small countries that protect their economic growth from rapidly advancing globalization by limiting the import of rugs to 40million. To this end, each country imposes a different type of trade barrier when the world price (Pw) is $3,000. In Aniva, the government decides toimpose a tariff of $1,000 per rug; in Kartaly, the government implements a quota of 40 million rugs.Assume that Aniva and Kartaly have identical domestic demand (Do) and supply (S) curves for rugs as shown on the following graph. Under theseconditions, the price of rugs is $4,000 per rug in each country.10000PRICE (Dollars per rug)900080007000-6000+50004000300020001000O0PDoTrue10False20D₁30 40 50 60 70QUANTITY (Millions of rugs)CountryAniva (tariff $1,000)Kartaly (quota 40 million rugs)Assuming Aniva keeps the tariff at $1,000 per rug, complete the first row of the following table by calculating each of the values given this increase indemand. Assuming Kartaly maintains a quota of 40 million rugs, complete the second row of the table by calculating each of the values given thisincrease in demand.Price(Dollars)80 90 100(?True or False: The increase in demand helps domestic producers but hurts domestic consumers In Kartaly.Which of the following explain why a tariff is aQuantity Demanded at New Price(Millions of rugs)Imports(Millions of rugs)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.An exporter can try to cut costs or slash profit margins.Importers who are able to pay the tariff duty will get the product.

World price = $3000 In Aviva , tariff =$1000 so price = world price + T = $4000 price = $4000 At P…

Answered: Aniva (tariff $1,000) mly (quota 40…

Aniva (tariff $1,000) mly (quota 40 million rugs) or False: The increase in demand helps domestic producers but hurts domestic consumers in Kartaly. O True False

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter20: International Trade

Section: Chapter Questions

Problem 11QP

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Alagir and Ertil are small countries that protect their economic growth from rapidly advancing globalization by limiting the import of televisions to 20 million. To this end, each country imposes a different type of trade barrier when the world price (Pw) is $2,000. In Alagir, the government decides to impose a tariff of $3,000 per television; in Ertil, the government implements a quota of 20 million televisions. Assume that Alagir and Ertil 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 $5,000 per television in each country. PRICE (Dollars per television. 10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 0 P D₂ D₂ II O True O False ☆ Country Alagir (tariff = $3,000) Ertil (quota = 20 million televisions) ✰ 10 20 30 40 50 60 70 80 90 100 QUANTITY (Millions of televisions) Suppose that in both countries, demand for televisions rises from Do to D₁. S Assuming Alagir keeps…
Aniva and kartaly are small countries that protect their economic growth from rapidly advancing globalization by limiting the import of televisions to 20 million. To this end, each country imposes a different type of trade barrier when the world price (Pw) is $3,000. In Aniva, the government decides to impose a tariff of $2,000 per television; In Kartaly, the government implements a quota of 20 million televisions. Assume that Aniva and Kartaly have identical domestic demand (D₁) and supply (S) curves for televisions as shown on the following graph. Under these conditions, the price of televisions is $5,000 per television in each country. PRICE (Dollars per television) 10000 9000 8000 7000 6000 5000 4000 3000 2000 + 1000 0 -S:-100 -Y: 11000 0 Do P D₁ True S:-100 7:13.000 False (40,5000) (20,3000) Slope:100 (60,7000 1600 ☆ Country Aniva (tariff = $2,000) Kartaly (quota = 20 million televisions) S 70,6000) (60,5000) (80,5000) Suppose that in both countries, demand for televisions rises…
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