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- ) A country opens up to trade and imports clothing. In the clothing market, surplus has been redistributed from A) consumers to producers. C) government to consumers. 1 B) producers to consumers. D) producers to government.bottom half When Venezuela allows free trade of soybeans, the price of a ton of soybeans in Venezuela will be $350. At this price, tons of soybeans will be demanded in Venezuela, and tons will be supplied by domestic suppliers. Therefore, Venezuela will export tons of soybeans. Using the information from the previous tasks, complete the following table to analyze the welfare effect of allowing free trade. Without Free Trade With Free Trade (Dollars) (Dollars) Consumer Surplus Producer Surplus When Venezuela allows free trade, the country's consumer surplus decrease or increase by , and producer surplus decrease or increase by . So, the net effect of international trade on Venezuela's total surplus is a loss or gain of .Consider a small (home) country with the following inverse demand of: P = 200 − 3QD and inverse supplyof: P = 20 + QS for a barrel of oil. The world demand is perfectly horizontal with a price of: P^X = 100.Solve the following for the home country:A) Calculate the equilibrium price and quantityB) Calculate the consumer surplus, producer surplus (note the shape), and total surplusNow, suppose the home country opens up to free trade.C) Calculate the quantity supplied, quantity demanded, export quantity, and priceD) Calculate the consumer surplus, producer surplus, and total surplusNow, suppose the home country is open to free trade and provides an export subsidy of $15 per barrel of oil.E) Calculate the equilibrium price and quantityF) Calculate the consumer surplus, producer surplus, tax revenue, and total surplusG) Explain how the three outcomes: no trade, free trade, and trade with an export tariff, affect the homecountry (consumers, producers, and overall welfare)H) What changes if…
- How do I figure these out? Please show the steps. Thanks. Refer to a graph that shows a domestic market for COVID19 Vaccine in Korea and U.S. to answer the following questions. Suppose that each country is an open economy and the world price of vaccine is $30. Which country is an importing country? (How do I figure this out?) How much is the amount of import? Which country is an exporting country? How much is the amount of export? 2) Calculate the consumer surplus, producer surplus, total surplus, and gains from trade in Korea. Also, do the same for the U.S. ThanksPROBLEM (5) (tariff) The domestic (US) demand and supply for soy is p = 80 − QD and p = QS + 10 respectively. US market is very small relative to the world market, and the world (equilibrium) price is $20. Draw one graph for the market marking all intercepts and intersections to help you with (a) and (b) below. (a) If there is NO trade, what is the CS, PS, net domestic benefits, DWL?(b) If there is free trade, what is the CS, PS, net domestic benefits, DWL? How many units are imported? Now the state imposes a tariff of t dollars per unit.(c) What should be the tariff amount t to maximize tariff revenues? In this case, what is the DWL?(d) What should be the tariff amount t so that consumers and producers equally well off (CS equals PS)? (e) What should be the tariff amount t to maximize PS?(f) What is the most efficient tariff amount t? What is the least efficient tariff amount t? (i.e. that minimizes and maximizes DWL respectively.)Suppose country B is a small export country (price taker) in the world market of lamp trade. Its domestic demand on and supply for lamp are: D＝18－P, S＝－12＋2P. The world market price of lamp is 14. (a) Calculate the equilibrium price and quantity of lamp in country B before trade. (c) Calculate B’s quantity of exported lamp under free trade. (c)Draw graph and calculate the net welfare effect of free trade on B’s consumers, producers and the whole country.
- give answer of d and e Solution part a b and c (a) 320 tricycles will be imported at the world price. (b) consumer surplus without trade is 9720. (c) total surplus without trade is 19440.Q) The United States represents a small part of the world orange market. a. Draw a diagram depicting the equilibrium in the U.S. orange market without international trade. Identify theequilibrium price, equilibrium quantity, consumer surplus, and producer surplus.b. Suppose that the world orange price is below the U.S. price before trade, and that the U.S. orange market is nowopened to trade. Identify the new equilibrium price, quantity consumed, quantity produced domestically, andquantity imported. Also show the change in the surplus of domestic consumers and producers. Has domestic totalsurplus increased or decreased?Based on this graph, total surplus in the absence of international trade is?
- Hi can you please help me with the calculations and working? Imagine a market with demand and supply as follows: D: p=10-q and S: p=q. 1. Find the equilibrium price, quantity, producer and consumer surplus, and total welfare 2. Now suppose there is a world price of $1 for the good. Which party (consumers or producers) would refuse to transact at the autarky price? Describe the new equilibrium in terms of: I. Consumer and producer surplus and welfare II. Imports 3. Now suppose a $1 tariff is introduced, making the local price $2. You may assume for now the imposition of a tariff does not change the world price. Compare welfare (including the government tariff revenue)I. With the situation before the tariffII. With the situation in autarky 4. Suppose this country is the only country in the world that demands this good. Derive a world demand for the good over the range from Price = 0 to Price = autarky Price. (hint: The world demand is the demand for imports to this country.) 5. Go back…If international trade is possible, what will happen to the surplus of contact lenses? PS- the graph shown is for contact lenses. Idk how to go about this problem?Suppose a country is currently producing at a point on its production possibility frontier, and undertakes no trade with other countries. Then trade is opened up. Which of the following would not occur as a direct result?a) Its production possibility frontier would shift.b) Its production would shift to another point on its production possibility frontier.c) The pattern of products that the country produced would differ from the pattern that its consumers consumed.d) Consumers would be able to consume at a point outside the production possibility frontier. Please dont use any ai tool.
