a) Which areas are in the graph are deducted from the consumer surplus as a result of tariff? Estimate the value of imports with tariff c) Estimate Imports without tariff b)
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- home cheese alc=1hr/kg wine alw=2hrs/gallon foreign cheese alc*=6hrs/kg wine alw*=3hrs/gallon Calculate the Home country's opportunity cost of producing cheese. In which product does the Home (Foreign* ) country has an absolute advantage? Show in which product does the Home (Foreign* ) country has comparative advantage? Calculate the relative supply (RS) With trade, what is the equilibrium range that the relative price of cheese to wine will settle? Supposing that the intersection of RS and RD occurs at PC /PW = 1, what is the implication?Part F. If home country imposes a specific tariff of $15 per unit of good Y imported, what is the tariff revenue? Show your work. Part G. Assume that instead of a specific tariff, an import quota will be used on good Y. What is the amount of the quota that will have identical effects (in terms of amount of good Y imports and the domestic price of good Y) as the specific tariff of $15? Explain your reasoning. Part H. Consider the use of import tariff vs. import quota in Home country that will result in the same amount of good Y imports and the domestic price of good Y. If quota rents are given to Foreign country, which policy, i.e., import tariff vs. import quota, is preferable by Home country on the basis of its effect on social welfare? Explain your reasoning.Consider the market for coffee in the small, isolated country of Krakozhia. Within Krakozhia, the domesticdemand for coffee is:Qd = 500 − 2pand the domestic supply of coffee is:Qs = −150 + 3p(a) Suppose Krakozhia is closed to trade with the rest of the world. Determine the equilibrium price andquantity.(b) Draw a graph showing the domestic supply and demand from (a). Label all axes and curves and markout intercepts and equilibrium values. Shade and label areas for the consumer and producer surplus.(c) Calculate the consumer, producer, and total surplus. from (a).(d) Suppose Krakozhia is open to trade and the world price is 150. Determine the domestic quantity supplied,domestic quantity demanded, and the quantity exported.(e) Draw a graph showing the domestic supply and demand and world price from (d). Label all axes andcurves and mark out intercepts and relevant values. Shade and label areas for the consumer and producersurplus.(f) Calculate the consumer, producer, and total surplus…
- Country C imports 80,000 metric tons of steel from Country U and produces domestically80,000 metric tons per year. The world price of steel is $500 per metric ton. Assuming linearschedules, research analysts estimated the price elasticity of domestic supply to be 0.50 and theprice elasticity of domestic demand to be -0.25 in the current market equilibrium. Country Cimposes an import duty of $150 per metric ton that caused the world price to fall by 10%. What are the terms of trade of the Country C steel market after the tariff was imposed? Explain the welfare effects of both countriesQuestion 2: Suppose Qd= 100- 10P Qs = 10P a. Draw a graph using the supply and demand equation assuming no trade. Calculateequilibrium P, Q, consumer, producer and total surplus. b. Draw another graph assuming that trade is allowed. Calculate quantity domesticallyconsumed, domestically produced, imports, consumer surplus, producer surplus assumingworld price =$3. c. What happens to consumer surplus and producer surplus after trade? Does total surplusincrease or decrease after trade? Show your calculations. i need the the diagramPLEASE ANSWER AND EXPLAIN NUMBER 2 AND 3Suppose that the world demand and supply elasticities of crude oil are -0.906 and 0.515, respectively. The current equilibrium price is $30 per barrel and the equilibrium quantity is 16.88 billion barrels per year. Derive the linear demand and supply equations. Now suppose the world supply curve you derived above consists of competitive supply and OPEC supply. If the competitive supply equation is: SC = 7.78 + 0.29P, what must be OPEC's level of production in this equilibrium? Now suppose social and political unrest in some non-OPEC producing countries reduced the competitive supply by 30 percent, what happens to the world price of crude oil?
- Market for Clothing in CambodiaConsumer SurplusProducer SurplusPrice of ClothingQuantity of ClothingDomestic DemandDomestic SupplyNew World Price Suppose the following graph represents the market of clothing in Australia prior to the expansion of China's clothing industry. Australia is an of clothing because the world price is the domestic equilibrium price.Please solve 4th,5th,6th Suppose the world price for a good is 100 and the domestic demand-and supply curves are given by the following equations Demand: P=160-Q Supply: P= 10 + 15Q How much is consumed? How much is produced at home? What are the values of consumer and producer surplus? If a tariff of 10 percent is imposed, by how much do consumption and dopest production change? What is the change in consumer and producer surplus? How much revenue does the government earn from tariff?Explain how a subsidy on agricultural goods like sugar adversely affects the income of foreign producers of imported sugar.
- 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. ThanksDomestic Demand Function: p= 100-4Q Domestic Supply Function: p= 40+2.5Q There is an international trade price equal to $15 (pw=15). Although, TheGovernment institutes an import tariff of $9 per unit. Suppose that instead of an import tariff, the government wanted to put an import quota that would make the same change in Producer Surplus as the $9 tarrif A) What is the size of this import Quota that makes this same change in Producer Surplus as the $9 Tariff? B) What is the Deadweight Loss under this Import Quota?27. Suppose IP is the international trade price and this country's government imposes a $3 tariff on imports of this good, what will be the loss to consumers? 28. Suppose IP is the international trade price and this country's government imposes a $3 tariff on imports of this good, what will be the net loss to this econom? 29. Suppose IP is the international trade price and this country's government imposes a $3 tariff on imports of this good, how much revenue will the government collect? 30. Suppose IP is the international trade price and this country's government imposes a 6 unit quota on imports of this good, what will be the net loss to this econom?
