Country 1 International market Country 2 P. 25 s2 S2 25 25 20 20 20 15 15 S1 15 S1 IP 10 10 EIP 10 FIP D2 d1 Q d2 0. D1 0 3 69 1215182124 0 3 6 9 1215182124 Q 0 3 6 9 1215182124 Q 17. What is the welfare loss to producers (decrease in producer's surplus) resulting from trade in country 2? O $3 O $27 O $37.125 O $50.5 O $55 P.
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- Ghana and Cote d'Ivoire are the world’s leading exporters of cocoa, which are grownand harvested by a large labour force that includes many children. Assume Ghana andCote d'Ivoire now outlaws the use of child labour on cocoa farms and the law is properlyenforced. Using economic theory and with the aid of diagrams, analyze what wouldhappen to employment and wages in the cocoa farming industry. Use supply anddemand curves in your analysis.use diagramsa. What is the effect on the equilibrium price and quantity traded in market of theintroduction of a new technology that reduces costs of production for all firms?b. What is the effect on the equilibrium price and quantity traded in a market of a changein tastes that reduces the demand for the product?c. What is the effect on the equilibrium price and quantity traded in a market of theimposition of a tax per unit sold on suppliers?d. What is the effect on the equilibrium price and quantity traded in a market of thepayment of a subsidy per unit sold paid to suppliers?5) Suppose Türkiye has raised taxes on avocados imported from Mexico. These taxes are an example of a(n) A) tariff. B) import quota. C) local content requirement. D) subsidy.
- 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 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…Refer to above Figure. Suppose the free-trade price is $85. Also, assume an export subsidy of $10. Calculate the total cost to the government for the export subsidy. a) $10,000 b)$14,000 c)$5,000 d)$19,000.The average prices and quantities of six hypothetical items offered by a government agency running a social protection program for a marginalized community are shown in the following table: 2021 2022 Items Price (Kshs/Kg) Quantity (Kg,000) Price (Kshs/Kg) Quantity (Kg,000) Maize Flour (A) 10 5 12 6 Vegetables (B) 15 8 18 10 Peas (C) 10 6 10 10 Beans (D) 20 10 22 15 Wheat (E) 30 10 40 15 Millet (F) 40 10 50 14 Tracey, the programs manager has hired you as a consultant to advice if she needs to ask the government for additional budgetary support. Using 2021 as base year, show detailed computations of Kelly’s and Fisher’s Price index numbers for 2022 In each case comment on the result
- The average prices and quantities of six hypothetical items offered by a government agency running a social protection program for a marginalized community are shown in the following table: 2021 2022 Items Price (Kshs/Kg) Quantity (Kg,000) Price (Kshs/Kg) Quantity (Kg,000) Maize Flour (A) 10 5 12 6 Vegetables (B) 15 8 18 10 Peas (C) 10 6 10 10 Beans (D) 20 10 22 15 Wheat (E) 30 10 40 15 Millet (F) 40 10 50 14 Tracey, the programs manager has hired you as a consultant to advice if she needs to ask the government for additional budgetary support. Using 2021 as base year, compute Kelly’s and Fisher’s Price index numbers for 2022 and in each case comment on the result.Country A has a competitive domestic market of charcoal. The demand and supply of the domestic market are given by QD = 12– 3P QS = P Country A has access to the international market, in which the charcoal price is Pw = 1. The domestic market is small and cannot influence the international price. a) What will be the price at which charcoal is traded in the domestic market? What will be the quantity produced in country A and what quantity will be exported/imported? b)Calculate the producer surplus and consumer surplus in country A and illustrate them in a demand and supply graph. c) Suppose charcoal’s price increases to PW=4 in the international market. What are the quantity demanded and the quantity produced in country A? What quantity does country A export/import? d) How does the price increase (from Pw =1 to Pw =4) change the consumer surplus and producer surplus in country A? Explain the changes in no more than 2 sentences. e) When Pw =4, the government in country A decides to…Identify a article that illustrate a market failure "air or water pollution" in Trinidad and Tobago. (i) Identify the type of market failure being discussed in the article and discuss why market failure occurs in this scenario. (ii) Suggest a relevant government policy that would yield the efficient outcome and carefully explain the process through which the implementation of the government policy will lead to the optimal outcome. . (iii) Carefully explain how the imposition of the chosen government policy impact consumer surplus, producer surplus and total surplus in this scenario.
- The banana industry was a market failure in St. Vincent and the Grenadines. (i) What type of market failure is it? (ii) Which government policy would yield the efficient outcome andchow does the process through which the implementation of the governmentpolicy lead to the optimal outcome. (iii) How does the imposition of the chosen government policy impactconsumer surplus, producer surplus and total surplus in this scenario?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?If a country produces 100 units of goods and it consume 60 units. Calculate the value of surplus and capital availble next year.
