A ban on imports, a tariff, or a quota raise the price to domestic consumers. This means that consumers will buy less of the product at a higher price. The loss associated with this is called barrier associated loss production associated loss deadweight loss trade loss
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- V1 why is becoming suppliers for foreign firms a good stragey when evntering a foreign marketA steel mill, S, produces 20 tons of water pollution for every 100 tons of steel it produces. The downstream village of Watertown (WT) spends $150 per ton of water pollution from S to eliminate itsenvironmental harm. S is a price taker in an international market where the demand for steel is p = 100 – 3X and the market supply of steel is p = 40 + 3X. X is in units of one (1) million tons per day and p is the price in dollars per ton of steel. S has a daily increasing marginal cost of production function, MC = x.S's Total Cost function = x*x/2 where x is S’s daily output.(a) If S has no legal liability for its pollution, what is S’s daily production of steel?How does your answer here relate to the concept of private efficiency?(b) WT wants to bargain with S to reach an optimal agreement on this pollution. Assuming S is still not legally liable for its pollution and both S and WT do not use lawyers, would there be an agreement? How does your answer here relate the concept of private…12. Government prefers to reduce imports with a tariff instead of a quota depends on whetherA. imports are completely eliminatedB. consumer demand is elastic.c. the demand curve is downward slopingD. barriers prevent new firms from enteringE. production costs are.constant. Thanks
- A steel mill, S, produces 20 tons of water pollution for every 100 tons of steel it produces. The downstream village of Watertown (WT) spends $150 per ton of water pollution from S to eliminate its environmental harm . S is a price taker in an international market where the demand for steel is p = 100 – 3X and the market supply of steel is p = 40 + 3X. X is in units of one (1) million tons per day and p is the price in dollars per ton of steel. S has a daily increasing marginal cost of production function, MC = x. S's Total Cost function = x*x/2 where x is S’s daily output. (a) If S has no legal liability for its pollution, what is S’s daily production of steel? How does your answer here relate to the concept of private efficiency? (b) WT wants to bargain with S to reach an optimal agreement on this pollution. Assuming S is still not legally liable for its pollution and both S and WT do not use lawyers, would there be an agreement? How does yo ur answer here relate the concept of…government prefers to reduce imports with a tariff instead of a quota depends on whetherA. imports are completely eliminatedB. consumer demand is elastic.c. the demand curve is downward slopingD. barriers prevent new firms from enteringE. production costs are.constantIf the United States implements a subsidy on domestic salmon, this will Question 5Answer a. increase the amount of salmon imported into the United States and increase the production of salmon in the United States. b. reduce the amount of salmon imported into the United States and reduce production of salmon in the United States. c. increase the amount of salmon imported into the United States and reduce the production of salmon in the United States. d. reduce the amount of salmon imported into the United States and increase the production of salmon in the United States. Clear my choice CheckQuestion 5
- calculate the following: change in consumer surplus, change in producer surplus, change in government revenue, consumer distortion, trade gain/loss, and net change in welfare. given that there is a tariff imposed of $5. export supply curve, Qex=3P-75 and import demand curve, Qim=15-P._____ means selling the products at a price less than the ongoing price in the market. a. Quota b. Subsidy c. Dumping d. TariffA(n) tariff rate quota voluntary import restraint quota rent is in place when a lower tariff rate is applied to imports within the governme import quota O import duty
- 1. The domestic demand curve for good A in a small nation is quantity demanded = 200 – 2P, and the domestic supply curve is quantity supplied = 2P. Required: a) Calculate the market price. b) Calculate the market quantity. c) Calculate the consumer surplus. d) Calculate the producer surplus.part a The effect of a tariff on the quantity demanded of an imported commodity: a will be higher the greater the elasticity of its demand. b will be lower the greater the elasticity of its demand. c does not depend on its elasticity of demand. d will only depend on its elasticity of supply. part b: In a market supplied by both domestic and foreign producers the government establishes a quota on imports at a level below current imports. The quantity sold by domestic producers will ______________ and the equilibrium quantity in the market overall will ______________. a not change; not change b increase; decrease c decrease; decrease d decrease; not change Part C: The picture attachedIt is the middle of winter in Chicago and the Huxtable family wants to have a bar-be-cue in the freezing cold. They search all over town and have a difficult time locating an outdoor grill. The small number of grills available for sale during the off-season represents: a. Supply b. Demand c. Tariff d. Embargo