Country C imports 80,000 metric tons of steel from Country U and produces domestically 80,000 metric tons per year. The world price of steel is $500 per metric ton. Assuming linear schedules, research analysts estimated the price elasticity of domestic supply to be 0.50 and the price elasticity of domestic demand to be -0.25 in the current market equilibrium. Country C imposes an import duty of $150 per metric ton that caused the world price to fall by 10%. Summarise and analyse the quantity of steel produced, consumed and imported in Country C. Analyse and discuss the welfare gain from trade in Country C. Show your answers of the steel market with a proper diagram

Q: A particular metal is traded in a highly competitive world market at a world price of $9.3 per…

A: Answer: Quantity supplied @$9.3 per ounce = 222+ 58(9.3)= 761.40 million dollars Quantity demanded…

Q: Identify the following statement's accuracy and briefly state why. government intervention is…

A: Here, given statements talk about government restrictions on imports and market failure.

Q: in increase in the demand for US goods imported into South africa will have the following impact in…

A: Foreign exchange: - Foreign exchange is the exchange of currency or it means the buying or selling…

Q: use the attached graph to answer following question   With the export subsidy, this country will…

A: In an economy, export subsidy refers to the government activity under which government provide some…

Q: he policies of OPEC+ have nothing to do with the surge in crude prices, two sources in the group…

A: OPEC which is a oil exporting petroleum countries is a Big cartel which make decision about…

Q: The domestic demand and supply for sugar are Qd = 60,000 – 400P and QSD = 20,000 + 500P. The foreign…

A: Total Supply =QSD+QSF=20,000+500P+20,000+100P=40000+600P

Q: An increase in the demand for US goods imported into South africa will have the following impact in…

A: When a country exports goods that other countries wish to buy, it can keep its currency in demand by…

Q: With the standard supply and demand model, total gains from trade (economic benefit) are highest…

A: Hi! Thank you for the question as per the honour code, we’ll answer the first question since the…

Q: Country C imports 80,000 metric tons of steel from Country U and produces domestically 80,000 metric…

A: (Only the first one has been answered).    A country imports commodities from its trading partners…

Q: Governments choose to use voluntary export restraints (VERS) rather than tariffs because voluntary…

A: Tariff refers to the custom duty or the charges imposed on the goods imported by the country from…

Q: The current quantity in the market for a good is qº 22 of which 44% is imported at the world price…

A: Current Quantity = 22 demand increases by 8% compound annually current world price = 4 Price…

Q: Much of the demand for U.S. agricultural output has come from other countries. In 1998, the total…

A:

Q: Alice is the global marketing director for a multinational electronics manufacturing firm. She is…

A: International trade is exchange resources ( natural , humans , ideas , technology etc ) from one…

Q: A widening demand-supply gap is raising coffee bean prices as Asians are drinking more coffee, while…

A: In this scenario demand is increasing and at the same time supply is reduced.

Q: In the figure below, Sai is the long-run domestic supply curve of oil without considering the…

A: Demand Curve: - demand curve is the graphical way of showing the relationship between the quantity…

Q: Coffee is now the second most traded commodity in the world after crude oil. Not only has demand for…

A: The demand for coffee and coffee products is higher in the world market. One of the important…

Q: Suppose that the short-run world demand and supply elasticities for crude oil are −0.076  and  0.088…

A: A short run competitive equilibrium is a situation in which, given the firms in the market, the…

Q: Consider a small country with only three​ producers, X,​ Y, and​ Z, who produce​ ink, pen, and​…

A: The annual market value of production in this economy is the sum of all final goods and services…

Q: what would be the pros and cons of imposing a price ceiling in the United States because of…

A: Price ceiling is form of price control regulated by the government which keeps the prices from…

Q: Assume costs of production fell, resulting in an extra 20,000 units supplied at each of the above…

A: Price Rands   Quantity Demanded (000 units) Quantity Supplied (000 units) 20.0 40 25…

Q: Q29 a government mandated price which is set below the equilibrium price in order to prevent thr…

A: The government imposes minimums and maximums in the market on the price of certain goods and…

Q: The graph below shows domestic supply and demand for purses in the United States. Suppose that at…

A: Given: Supply of purses to US market=30 purses

Q: Use appropriate supply and demand diagrams to analyze the effects on the market equilibrium price…

A: Equilibrium Concept Market supply and demand are in equilibrium, and prices are constant as a…

Q: If the ratio of the dollar price of a U.S. toy to the dollar price of the same toy sold in China is…

A: The real rate (RER) between 2 currencies is that the nominal rate (e) increased by the quantitative…

Q: US oil demand is given by P = 106 - 7* Q, where P and Q are oil price and oil quantity (in barrel)…

A: Demand curve has a negative relationship with price.

Q: Consider a competitive market served by many domestic and foreign firms. The domestic demand for…

A: Subpart a: Equilibrium price in percent can be calculated as follows. Equilibrium price is $200.…

Q: Which of these claims is NOT a claim the book reports most economists agree about?   Question 1…

A: The answer is - The United States should eliminate agricultural subsidies

Q: Equilibrium Price: Cell Phones   Worldwide quarterly sales of a brand of cell phones were…

A: (Q)Worldwide quarterly sales of a brand of cell phones were approximately q = −p + 146  million…

Q: An increase in the demand for US goods imported into South africa will have the following impact in…

A: Imports are those goods and services bought by individuals, businesses and government from rest of…

Q: Optimal Tariff for a Large Importing Country Consider a large country levying a tarifft. The…

A: Given information Export price=P* Import price=P*+t Country import=M Country Export=X Optimum…

Q: S p' p* D →数量 Y* Y' ΧΧ M The supply function and demand function of a certain agricultural product…

A: Given: The supply function for the agricultural products is: S = 2p - 40 The demand function for the…

Q: How much the cost of a tariff pass through the prices paid in the United States depends on a.…

A: The cost of the tariff will depend on the elasticity of demand for the good. When the goods have…

Q: Q.1. Suppose that the demand for steel in Japan is given by the equation Q's = 1200 - 4Ps + PA+ PT,…

A: Answer:   a. Given : QdS = 1200-4PS+PA+PT is the demand curve for steel and QsS = 4PS is the supply…

Q: Seven-Elevens supply chain strategy in Japan can be describes as attempting to micro match supply…

A: Seven-Eleven is the strategy used to limit the inventory by controlling the cost and follow a…

Q: A Singapore's demand for China's imports will shift up by 10%, leading to a new equilibrium at point…

A: RMB stands for Chinese Yuan  SGD stands for Singapore dollar. Current exchange rate is SGD / RMB =…

Q: If a large country pays a subsidy to its producers of a product, Group of answer choices Foreign…

A: Subsidy: - Subsidies are the assistance provided by the government to any person in cash or kind.

Q: A federal regulation that required that all beef consumed in the US must be grown and processed in…

A: Consumption is the process of final using of the product and services. For example, when a person…

Q: Which of the following is responsible for the change in demand and supply of silk shirts from X1 to…

A: Equilibrium refers to the situation which is attained where demand and supply intersect each other.…

Q: Define the current status of supply and demand for gas. Identify at least one factor that has caused…

A: The market is an allocation mechanism which results in the equilibrium and determines the…

Q: The supply and demand functions for maize farmers are given as Qs = - 32 + 10P and Qd = 40 – 2P…

A: a. Qs =- 32 + 10P Qd = 40 – 2P At equilibrium price quantity demanded =quantity supplied, so, - 32 +…

Q: Corn is a very valuable product for which the U.S. government routinely offers subsidies. With no…

A: The data given is as follows:- Equilibrium price of corn = $300 Equilibrium quantity of corn = 500…

Q: Two firms, A and B, are contemplating exporting a local fruit called durian to another country that…

A: a) The payoff matrix of the game can be represented as :   Firm B   Firm A   Export Don't…

Q: Which of the following statements is correct? Multiple Choice   If supply increases and demand…

A: Basics:- Increase in demand results rise in the equilibrium price and vice versa. Increase in…

Q: QUESTION 2 When demand conditions are the same in all countries, the Rybczynski and Stolper-…

A:

Q: Consider a large country with the following inverse demand and supply functions of golf clubs: P =…

A: The domestic demand curve for the golf clubs, P = 100- Q The domestic supply curve for the golf…

Q: Q.1. Suppose that the demand for steel in Japan is given by the equation Q's = 1200 - 4Ps + PA+ PT,…

A: (a)QDs=1200-4Ps+Pa+Pt QSs=4Ps For equilibrium price, equating demand and supply: 1200-4Ps+Pa+Pt=4Ps…