Econ Individual Assignment solutn 10

A lobbyist for the coal industry in the US argues for increased tariffs. a) derive graphically (make sure that you label the graph completely) the impact of such a tariff on the quantity imported, the quantity produced domestically, and the price at which coal can be purchased for a standard supply and demand graph. Assume that the world price of coal is smaller than the domestic equilibrium price, and that the US is a smopec. (10 points) b) Illustrate the producer surplus, consumer surplus, and deadweight loss after the tariff has been put in place. (10 points) c) discuss briefly whether a tariff is likely to be a good idea for America or a bad idea. (10 points)

Consider a small country that exports steel. Suppose the following graph depicts the domestic demand and supply for steel in this country. One of the two price lines represents the world price of steel.     Because this country exports steel, the world price is represented by(p1 or p2) .   Suppose that a “pro-trade” government decides to subsidize the export of steel by paying $10 for each ton sold abroad. With this export subsidy, the price paid by domestic consumers is $______   per ton, and the price received by domestic producers is$_______per ton. The quantity of steel consumed by domestic consumers (reamins unchanged, decrease, and increase)   , the quantity of steel produced by domestic producers   (reamins unchanged, decrease, and increase)  , and the quantity of steel exported  (reamins unchanged, decrease, and increase)   .   True or False: With the export subsidy, this country will start importing steel from abroad.   Under the export subsidy, consumer surplus is…

A small country can import a good at a world price of $10 per unit. The domestic demand and supply curves are given by the following equations: Demand: D = 400 – 5P Supply: S = 20 + 10P, where D is the quantity demanded, S is the quantity supplied, and P is price a) Derive the import demand curve of the country and determine the level of imports. b) Calculate the effects of a per-unit tariff of $ 5 levied on imports on consumers, producers, government revenue, and overall national welfare, using the concepts of consumer surplus, producer surplus, and deadweight loss. c) Suppose that each unit of production yields a marginal social benefit of $10 and calculate the effect of the tariff on total welfare.

Suppose there are 2 countries that have the following supply and demand equations in autarky Country A Demand: Q = 80 - 4P Supply: Q = 2P - 4 Country B Demand: Q = 32 - 2P Supply: Q = 8P - 8 a) Given the information above which country would be the importer? (Enter A, B) b)What would be the Free Trade Price? c)What would be the Free Trade quantity traded? d) If the importing country imposes a tariff equal to $2 per unit, what would be the new price in the importing country?

International trade: If Germany (which is a large country) imposes an import tariff on textile imports, we can conclude that: (a)The world price of textile rises, and Germany imports less. (b)The world price of textile stays constant, and Germany imports less. (c)The world price of textile falls, and Germany imports less. (d)The world price of textile stays constant, and Germany imports the same as before.    Explain your answer clearly. Limit your explanation to 200 words.

The USA imports 380,000 units of cellphones from China, and locally the USA produces 120,000 units. The world price for cellphones is $300 per unit. The USA is a large country and imposed a tariff of 25% for the importation of cellphones from China as a retaliation due to its trade imbalance with China. Due to the tariff, the world price falls by 10%, local production increases by 80% and local consumption falls by 20%.   (a) Solve for the price after the tariff was imposed, and quantity of cellphones produced, consumed and imported in the USA. Show your answers with a proper diagram of the cellphones market. (b) Explain the effects on the consumer surplus, producer surplus, deadweight loss and terms of trade of the cellphones market in the USA after the tariff was imposed. Explain the welfare effects of both countries.

Q5(5): Kutaro is a small island nation in the South Pacific. The inhabitants of Kutaro work to produce one of two goods: honey and clams. Recently Kutaro has begun to trade with other countries, and the Kutaran economy has adjusted to the international prices for honey and clams and is in equilibrium. The current international price for honey is $2 per jar, and the international price for clams is $16 per pound. a) If the Kutarans decide to give up producing 100 pounds of clams, how many more jars of honey could they produce? b) Now suppose that the Kutarans want to increase production of clams by 50 pounds. How many jars of honey must they give up to make this possible?

Steel is traded in a perfectly competitive world market. Australia is an exporter of steel. A growth in world demand for steel for use in construction raises the world price of steel. The effect of the rise in the world price of steel will be to: Increase the quantity of steel consumed by Australian consumers, and increase exports of steel. Cause Australia to commence importing steel. Decrease the quantity of steel consumed by Australian consumers, and increase exports by Australian producers. Decrease the price paid by Australian consumers for steel. Increase the quantity of steel consumed by Australian consumers, and decrease exports of steel.

* 7. Steel Industry A Consider a small country that exports steel. Suppose the following graph depicts the domestic demand and supply 1 steel in this country. One of the two price lines represents = world price of steel. ? Use the following graph to help you answer the questions below. You will not be graded on any changes made to this graph. Price of Steel (Dollars per ton) 100 90 50 40 30 20 10 0 Demand Supply P₂ 0 100 200 300 400 500 600 700 800 900 1000 Quantity of Steel (Tons) Triangle Polygon Because this country exports steel, the world price is represented by. Suppose that a "pro-trade" government decides to subsidiz the export of steel by paying $10 for each ton sold abroad. With this export subsidy, the price paid by domestic consumers is s per ton, and the price received by domes producers is per ton. The quantity of steel consumed by domestic consumers the quantity and the steel produced by domestic producers quantity of steel exported True or False: With the export…

Suppose the government of the U.S. wants to protect the domestic sugar industry by restricting sugar imports. Suppose the U.S. produces sugar domestically according to the supply curve QS = P, and suppose the domestic demand for sugar is QD = 8 – P. The world price of sugar is $2. For price of sugar, the units are $/lb., and for quantity of sugar, the units are 1,000,000 Ibs./year.

The demand for cars in a certain country is given by: ? = 15,000 − 0.3?, where P is the price of a car. Supply by domestic car producers is: ? = 5,000 + 0.2?. Suppose this economy opens to trade, and the world price of a car is $13,000. If the government imposes a quota allowing 3,000 cars to be imported, then the domestic price of cars will be

Problems & Applications (Ch 09) Q#9

Steel is produced only in the US and the rest of the world (ROW). The inverse demand and supply in the US are p = 110 - Q8 and p = 20 + Qỗ, while in the ROW, they are p = 70 - Q and p = Qk. All quantities are in millions of tons and all prices are in dollars per ton. Since steel is produced more cheaply in the ROW, the US imports it from the ROW under international trade. At any price, p, the imports of the US, QM. is the excess demand for steel given by the difference between the quantity demanded and the quantity supplied domestically in the US: QM = Q% - Qi. Similarly, the exports of the ROw, QF, is the excess supply of steel given by the difference between how much they produce and how much they demand: QE = Qk - Qg. (b) Find the consumer and producer surplus in the US at the price p". consumer surplus $ million producer surplus million (c) The US government imposes a tax of $12 per unit on the ROw's exports. Find the new world equilibrium price, p**, and new world equilibrium…

Suppose that Canada imports pearl necklaces from India. The free market price is $111.00 per necklace. If the tariff on imports in Canada is initially 26%, Canadians pay $ per necklace. One of the accomplishments of the Uruguay Round that took place between 1986 and 1993 was significant across-the-board tariff cuts for industrial countries, as well as many developing countries. Suppose that as a result of the Uruguay Round, Canada reduces its import tariffs to 13%. Assuming the price of pearl necklaces is still $111.00 per necklace, consumers now pay the price of $ Based on the calculations and the scenarios presented, the Uruguay Round most likely hurts consumers hurts consumers in India. per necklace. in Canada and

Market demand for steel in Econland is given by the domestic demand function of QD-40-4P. The domestic supply of steel is given by QS-P. P is the price of steel per gram. For years, Econland has not traded with the world in the steel market. However, a new president has taken office, and she decides to open up trade agreements with the rest of the world. The world price of steel is $4 per gram. By how much do Producer, Consumer and Total Surplus change? OPS decreases by 24. CS decreases by 64. Total surplus decreases by 88. PS decreases by 24. CS increases by 64. Total surplus increases by 40. PS increases by 32. CS increases by 8. Total surplus increases by 40 PS decreases by 32. CS increases by 8. Total surplus decreases by 26 None of the above

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 = 11.5 – Q          Supply: P = 5.5 + Q Price is in 10 Yuan (¥) per bushel of soybeans and the units for Quantity are 100 million bushels per year. This is to make graphing simpler. This does NOT mean that the price is 10 and quantity is 100. Rather it means that if the price was 40¥ and the quantity was 7,500,000,000 bushels, this would plot as 4 and 7.5 respectively. The world price for soybeans is ¥65/bushel (this would graph as a horizontal line at 6.5). 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: Domestic Demand curve (D), Domestic Supply curve (S), the World Price (WP), and the Price with tariffs (PT), along with the quantities imported both with and without the tariff. Based on your graph, what…

Now suppose other countries produce cassava and Côte d'Ivoire can import cassava at the world price (Pw) which is lower than the autarky (e. economic independence or self-sufficiency) price (Pa). Figure 2 below depicts the demand and supply curves for cassava in Côte d'Ivoire with imports. Quantity is represented on horizontal axis and price is on the vertical axis. Carefully examine Figure 2 and answer questions 8-11 that follow: Note: Qa is the Autarky quantity, Qs is the quantity of cassava supplied by producers in Côte d'Ivoire, and Qd is the quantity of cassava demanded by consumers in Côte d'Ivoire after import Figure 2: Demand and Supply of Cassava in Côte d'Ivoire with Imports Price ($) Pa Oa 9b OC Od OF or Pw 0 a Qs U d la la D₂ Quantity (kg) Question 8: Using the letters (i.e. a, b, c, d, e, f) from Figure 2, which area represents the producer surplus if Côte d'ivoire imports cassava at the world price (Pw)? Select all that apply.

For a large country import tariffs will yield a price increase for domestic consumer that is A   higher than the tariff itself B   equal to the tariff itself C   smaller than the tariff itself

International trade  Consider an H-0 economy in which there are two countries (US and France), two goods (wine and cheese) and two factors(capital and labor). Q1: Suppose an increase in the labor force in the US causes cheese production to increase. Which factor is used intensivelyin wine production? Which H-O theorem is applied to get this answer? Explain.

International trade  Consider an H-0 economy in which there are two countries (US and France), two goods (wine and cheese) and two factors(capital and labor). Q1:Suppose workers in France benefit when tariffs are increased on cheese imports. Which factor is used intensively in cheese production? What is France's abundant factor? Explain.

The cost of producing cars in Canada is $30,000, while the cost of producing cars in Mexico is $22,000, while in the U.S. it costs $18,000. Canada currently imposes a 50% tariff on all automobile imports. a) If Canada enters into a customs union with Mexico, will this lead to trade diversion or trade creation? b) If the tariff rate was originally 100%, would Canada entering into a customs union with Mexico lead to trade diversion or trade creation? c) If the tariff rate was originally 100%, and the cost of producing cars in the U.S. was $12,000, would Canada entering into a customs union with Mexico lead to trade diversion or trade creation?

If the free trade price is IP and this country imposes a trade tariff of $6, the loss to the economy as a result of this tariff is represented by     (a) area (a) in this graph     (b) area (b) in this graph     (c) areas (c) + (d)     (d) areas (b) + (c) + (d) + (e)     (e) areas (a) + (b) + (c) + (d)

Consider the case of the following large country (all prices are measured in euros, and quantities are measured in single units): – Domestic demand curve: P = 3600 –3Q – Domestic supply curve: P = 2Q – World free trade price of imports = 140 euros per unit – When the tariff is introduced, domestic prices rise by exactly one third of the amount of the tariff.     Calculate the following. Also show your workouts, draw a diagram depicting the importing country market under free trade and with a tariff.   With a 30 euro specific tariff:   The change in consumers' surplus going from free trade to the tariff, in euros: __________________________________________________________________________________ The change in producers' surplus going from free trade to the tariff, in euros: __________________________________________________________________________________ The amount of tariff revenue, in euros: __________________________________________________________________________________ The change…

A country decides to impose higher tariffs on imported goods to encourage domestic production. This policy change impacts the circular flow of income and expenditure by altering the dynamics of international trade. In this scenario, the imposition of tariffs on imports primarily:A) Acts as a leakage in the circular flowB) Functions as an injection into the circular flowC) Has no significant impact on the circular flowD) Reduces government expenditure in the circular flow   Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.

Assume that the United States, as a steel-importing nation, is large enough so that changes in the quantity of its imports influence the world price of steel. The following table shows the U.S. supply and demand schedules for steel, along with the overall amount of steel supplied to U.S. consumers by domestic and foreign producers. Price (Dollars per ton) 100 200 300 400 PRICE (Dollars per ton) 800 700 600 500 400 300 200 100 500 600 700 0 0 2 Using the data in the table, use the blue points (circle symbol) to plot the demand curve and use the orange points (square symbol) to plot the supply curve (domestic plus imports) on the following graph. Then use the black cross to indicate the equilibrium price and quantity. ? 6 (Domestic) 0 0 1 2 3 5 Quantity Supplied The new equilibrium is (Domestic plus Imports) 0 8 10 12 14 16 18 20 QUANTITY (Tons of steel) With free trade, the equilibrium price of steel is $ 4 8 12 16 20 24 tons are supplied by U.S. producers, and tons are imported.…

You work for a Nova Scotia Company trying to successfully enter the cranberry market in Australia. Create an analysis on the entry country (Australia) based on the following; Are there any trade restrictions? This includes embargoes, quotas, import taxes, tariffs, licensing, and customs duties.Does the entry country require countertrade? Do they receive foreign aid?

answer d and e only

Consider a small country. The domestic (home) demand is Qd = 120−3P and supply is Qs = 2P −20 whereQs and Qd are the quantity supplied and demanded, respectively, and P is the price per unit.A) Find the equilibrium price and quantity when the domestic market is closed to international trade.Now, suppose the country opens up to international trade, and the world price is $20 per unit.B) Find the new equilibrium price, domestic quantity supplied and demanded, and quantity imported.C) Suppose the domestic government imposes a tariff of $4 per unit. Find the equilibrium price, domesticquantity supplied and demanded, quantity imported, and tax revenue collected.D) Now, suppose the government impose a quota that limits the quantity of imports to 20 units. Find thenew equilibrium price, domestic quantity supplied and demanded, and quantity imported.E) Calculate Consumer surplus, producer surplus, and total surplus, with free tradeF) Calculate Consumer surplus, producer surplus, tax revenue,…

i live in cyprus .  a) What are the comparative advantages (as a product or service) of your country? Why? b)Are those products main export goods/services of your country? i) If yes, please give the percent of export share of those products. ii) If no, please indicate which products/services should beconsidered as products that they have comparative advantage considering the current export volume?

Let us consider the case of Venezuela. A tariff is imposed on imported clothes in Venezuela. In the presence of free trade, the quantity of clothes produced locally in Venezuela was 15540 per year. After the imposition of tariff, the quantity of clothes produced locally in Venezuela increased by two-fifth (2/5) or 40% compared to the estimate of the previous sentence when there was free trade. The quantity of clothes bought locally in Venezuela was 34472 per year before tariff. The quantity of clothes bought locally in Venezuela decreased by 33% in the presence of tariffs compared to what it was during free trade. a)What was the quantity sold locally per year after tariff ? Please give your answers in two decimal places. b)What is the quantity of clothes imported in Venezuela in a month on average after the imposition of the aforementioned tariff? Please give your answers in two decimal places. c)What is the percentage change in the quantity of clothes imported in Venezuela per year…