1. Use the following figure to answer to the questions: A. The U.S. Motorbike Market B. International Motorbike Market C. The Rest of the World's Motorbike Market Price Price Price ($/unit) ($/unit) ($/unit) Sus 2,000 2,000 U.S. pretrade price World price with trade Exports B Sx 1,000 F 1,000 1,000 Imports 700 700 Dus Dm Df 65 Quantity (thousands) 75 Quantity (thousands) 15 40 50 Quantity (thousands) 25 50 Sus = U.S. supply Dus = U.S. demand Sy = Rest-of-world supply of exports (S, = S; - D7) Dm = U.S. demand for imports (Dm = Dus - Sus) Sf = Rest of world's supply Df = Rest of world's demand a. Using the figure above determine the value of the following for the importing country: -Producer surplus before and after trade -Consumer surplus before and after trade -Net changes in producer and consumer surplus -Net changes in total surplus b. Using the figure above determine the value of the following for the exporting country: -Producer surplus before and after trade -Consumer surplus before and after trade -Net changes in producer and consumer surplus -Net changes in total surplus

1. Use the following figure to answer to the questions: A. The U.S. Motorbike Market B. International Motorbike Market C. The Rest of the World's Motorbike Market Price Price Price ($/unit) ($/unit) ($/unit) Sus 2,000 2,000 U.S. pretrade price World price with trade Exports B Sx 1,000 F 1,000 1,000 Imports 700 700 Dus Dm Df 65 Quantity (thousands) 75 Quantity (thousands) 15 40 50 Quantity (thousands) 25 50 Sus = U.S. supply Dus = U.S. demand Sy = Rest-of-world supply of exports (S, = S; - D7) Dm = U.S. demand for imports (Dm = Dus - Sus) Sf = Rest of world's supply Df = Rest of world's demand a. Using the figure above determine the value of the following for the importing country: -Producer surplus before and after trade -Consumer surplus before and after trade -Net changes in producer and consumer surplus -Net changes in total surplus b. Using the figure above determine the value of the following for the exporting country: -Producer surplus before and after trade -Consumer surplus before and after trade -Net changes in producer and consumer surplus -Net changes in total surplus

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter4: Markets In Action

Section: Chapter Questions

Problem 2SQP

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