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- Explain how a subsidy on agricultural goods like sugar adversely affects the income of foreign producers of imported sugar.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.. The United States currently imports all of its coffee. The annual demand for coffee by U.S. consumers is given by the demand curve Qd = 150 − 10P, where Qd is quantity (in millions of pounds) and P is the market price per pound of coffee. Suppose the domestic supply is Qs = 10P −50. The U.S. coffee market is competitive. Suppose that the world price of coffee is $6. Congress is considering a tariff on coffee imports of $2 per pound. (a) Find the producer and consumer surplus if there was no trade. (b) Calculate the consumer and producer surplus after we engage in free trade. (c) If the tariff is imposed calculate the changes to consumer and producer surplus. (d) Other than lower prices, provide two benefits that can occur as a result of free trade.
- The following graph shows the domestic market for oil in the United States, where SDSD is the domestic supply curve, and DDDD is the domestic demand curve. Assume the United States is considered a large nation, meaning that changes in the quantity of its imports due to a tariff influence the world price of oil. Under free trade, the United States faced a total supply schedule of SD+WSD+W, which shows the quantity of oil that both domestic and foreign producers together offer domestic consumers. In this case, the free-trade equilibrium (black plus) occurs at a price of $240 per barrel of oil and a quantity of 9 million barrels. At this price, the United States imports 6 million barrels of oil. Suppose the U.S. government imposes a $60-per-barrel tariff on oil imports.Hi can you please help me with the calculations and working? Question 1 Assume D: p=2-q and S: p=q are demand and supply What's the autarky equilibrium price and quantity, consumer surplus, producer surplus and total welfare? Suppose the world price is pw=3 and that local firms can sell as much as they want at that price; what is consumer surplus and producer surplus? Has the ability to trade at the world prices increased welfare? By how much?Suppose that the world price of a gallon of gasoline is $2.00 dollars per barrel and the US can buy all the gas it wants at this price. Suppose also that the demand and supply schedules for gasoline in the US are as follows: Price ($ per gallon) US Quantity demanded US quantity supplied $1.00 65 35 $1.50 60 40 $2.00 55 45 $2.50 50 50 $3.00 45 55 Suppose the US imposes a $.50 tax per gallon on imported gas. What quantity would Americans buy? How much of this would be supplied by American producers? How much would be imported? Who is helped and who is hurt among the following groups: domestic consumers, domestic gasoline…
- 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%. Analyse the effects of the consumer surplus, producer surplus, government revenue, and deadweight loss in the Country C steel market with the tariff. What are the terms of trade of the Country C steel market after the tariff was imposed? Explain the welfare effects of both countries.Suppose the U.S. government increases the amount of steel that can be exported to foreign countries. What will happen in the domestic market for steel? A.) The domestic demand for steel will increase, leading to a lower equilibrium quantity. B.) The domestic supply of steel will decrease, leading to a higher equilibrium quantity. C.) The domestic supply of steel will increase, leading to a lower equilibrium quantity. D.) The domestic demand for steel will decrease, leading to a higher equilibrium quantity.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?
- 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 countriesSuppose you have the following for white t-shirts market:Market demand is P=125-(3/8)QMarket supply is P=5+(1/8)Q. there is now a global supply that is horizontal at $15. But the government now imposes a tariff of $5 per unit of t-shirt.a. Obviously the world price and domestic price will now be $20. Calculate the quantityproduced and demanded domestically? b. Using graphs show the changes in CS (Consumer Surplus) and PS (Producer Surplus) comparedto Free Trade. Show also the government revenue, which is tariff per t-shirt times the new level of imports. Who gains in comparison to Free Trade scenario? Who loses? What is the welfare gain or loss? Show by using graphs.Suppose the domestic supply (QS) and demand (QD) for MP3 players in the United States are given by the following set of equations:QS = -25 + 10PQD = 875 – 5PIn autarky (in the absence of international trade), the consumer surplus in the United States' MP3 player market is ___________.