China is the major importer of Canadian wheat. Its demand (QPH) and supply (Q°x) for wheat is given respectively by and QSH = 170 + 5 Pµ Derive the excess demand curve for wheat in China. ( QPH = 500 – 10 PH d) What would wheat price be in China in the absence of trade? e) If Canada and China are allowed to trade with one another, what will be the price and the volume of trade? ( bushel. f) The trade war has heated up and China imposes a tariff of $2.40 Determine the effect of the tariff on: (1) the price of wheat in each country, (2) the quantity of wheat produced and consumed in each country, and (3) the volume of trade. per g) Properly label to illustrate the excess demand for China and excess supply curve for Canada on the same graph with free trade and with the import tariff of $2.4 imposed.

China is the major importer of Canadian wheat. Its demand (QPH) and supply (Q°x) for wheat is given respectively by and QSH = 170 + 5 Pµ Derive the excess demand curve for wheat in China. ( QPH = 500 – 10 PH d) What would wheat price be in China in the absence of trade? e) If Canada and China are allowed to trade with one another, what will be the price and the volume of trade? ( bushel. f) The trade war has heated up and China imposes a tariff of $2.40 Determine the effect of the tariff on: (1) the price of wheat in each country, (2) the quantity of wheat produced and consumed in each country, and (3) the volume of trade. per g) Properly label to illustrate the excess demand for China and excess supply curve for Canada on the same graph with free trade and with the import tariff of $2.4 imposed.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter12: The Partial Equilibrium Competitive Model

Section: Chapter Questions

Problem 12.8P

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