Explain and discuss the role of imports in an open competitive market. In you answer cover the followings: a) In what circumstances the market may have a necessity to import a particular good? Explain your answer using appropriate graph. b) How does a tariff on import affect the market and what problems does this kind of intervention create?Explain you answer using appropriate graph.
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Explain and discuss the role of imports in an open competitive market. In you answer cover the followings:
a) In what circumstances the market may have a necessity to import a particular good? Explain your answer using appropriate graph.
b) How does a tariff on import affect the market and what problems does this kind of intervention create?Explain you answer using appropriate graph.
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- The Scenario : Suppose that the market for good X is small in Malaysia and in Thailand , relative to the world market for good X . Both these markets are currently open to free trade . Suppose also that , relative to the rest of the world , Malaysia has a comparative advantage in producing good X whilst Thailand has a comparative disadvantage in producing good X. Malaysian consider good X a normal good , whereas Thais consider good X an inferior good . The Question : Using a set of appropriate diagrams ( with demand and supply curves ), show the comparison between the Malaysian and Thai markets for good X (side by side) - when an economic recession hits both Malaysia and Thailand simultaneously. Explain what happens to the price of good X in each country, as well as the quantity demanded, quantity supplied, and the quantity imported/exported. make sure that you include welfare tables and briefly explain the welfare effects on consumers, producers, and society as a whole - for each…What Type of attraction are in Uk? and which are the main Characteristcs of supply? (what make different from the rest of the world)Assume that the markets for sugar cane, rum and whiskey are initially in equilibrium (i.e., supply equals demand in each case). Assume further that a good harvest impacts the world’s sugar cane crop. Sugar cane is a principal ingredient in rum, but it is not an ingredient in whiskey. Rum and whiskey are substitutes in consumption. If the government implements a price restriction in the sugar cane market with the aim of protecting the farmers. Explain how will this impact the revenues for sugar growers, rum producers and whiskey producers?
- Graphically show how each of the following shifts the supply curve. Also identify which factor of supply is being affected in each case. What happens to the supply of Spices if the US government withdraws an embargo on imported Spices from Iran?Assume that the markets for sugar cane, rum and whiskey are initially in equilibrium (i.e., supply equals demand in each case). Assume further that a good harvest impacts the world’s sugar cane crop. Sugar cane is a principal ingredient in rum, but it is not an ingredient in whiskey. Rum and whiskey are substitutes in consumption. Discuss the impact of the good harvest on each of the three markets. Discuss the effect on the markets for each of the three products if the government implements a price restriction in the sugar cane market with the aim of protecting the farmers. How will this impact the revenues for sugar growers, rum producers and whiskey producers?Same question screenshot is attached Assume that Grainland currently produces wheat and does not trade wheat in international markets. (a) Draw a correctly labeled demand and supply graph for the domestic wheat market in Grainland. Label the equilibrium price, PePe, and the equilibrium quantity, QeQe. (b) Suppose the price of wheat in the world market is lower than the domestic price of wheat in Grainland. Assume now Grainland wants to trade wheat in the world market. (i) On your graph from part (a), label the world market price of wheat as PWPW, and identify the domestic quantity demanded of wheat at PWPW, as Q3Q3, and the domestic quantity supplied of wheat labeled as Q1Q1. (ii) Will Grainland export or import wheat? Explain. (c) With international trade in wheat, who will benefit in Grainland: domestic producers, domestic consumers, neither or both? Explain. (d) Suppose that the government of Grainland decides to provide a subsidy for wheat farmers to make the country more…
- Demand and supply.2. Use the process of comparative statics to analyse the following changes in market conditions for the pizza market in a capital city (Hint: You are analysing general market condition assuming a competitive market). a) There is a general increase in consumer income. [assume pizza is a normal good] b) There is a fall in the price pastry ingredients used to make pizza by 25%.Elasticity.3. You are in the food truck industry in a capital city. You discover a new way to organise the preparation of ingredients that decreases the cost and increases the number of serves per day. You believe this will enable the business to reduce the price of a serve of curry from $20 to $15. It is estimated that the price elasticity of demand for food truck cuisine is 1.9. What will happen to total revenue if the price of a curry per serve is decreased? Should you decrease the price of the curryAssume that the markets for sugar cane, rum and whiskey are initially in equilibrium.Sugar cane is a principal ingredient in rum, but it is not an ingredient in whiskey.Rum and whiskey are substitutes in consumption. The government implements aprice restriction in the sugar cane market with the aim of protecting the farmers.(i) What type of price restriction is implemented by the government? Explain.(ii) Discuss the effect on each market if the government implements a pricerestriction in the sugar cane market with the aim of protecting the farmers.(iii) Illustrate the effect on each market if the government implements a pricerestriction in the sugar cane market with the aim of protecting the farmers.For each of the following changes in the demand or supply curves in the automobile market below, draw a graph showing the old demand and supply curves as well as the new demand or supply curve (whichever shifts). Also show how the equilibrium price and equilibrium quantity change. Show work on 3 different graphs. With lower trade barriers, foreign automakers export more cars to the U.S. U.S. automobile workers unionize. Due to research and development (R&D), new technologies enable automakers to produce cars much faster.
- The following table shows the amount of good A and good B that two countries could produce if they devoted all their resources to that good. Assume both countries have the same quantity of resources and the trade-off between good A and good B remains constant as resources are shifted from one good to another. Answer the questions below and show calculations where appropriate. Canada India Good A 600 500 Good B 950 1200 Draw a straight-line PPF graph for Canada. Draw a straight-line PPF graph for India. Which country has the comparative advantage in good A? In good B? Explain. What is India’s marginal opportunity cost of producing good A? Good B? Based on the data given, what is the terms of trade range for good A in terms of units of good B?Consider a competitive market in which we can analyze the market using our standard demand and supply framework (i.e., downward sloping demand, upward sloping supply, and the market price adjusts to keep the market in equilibrium). If the producers in this market all got an improvement in technology that lowered their marginal cost of producing any given level of output, then we would expect to see Group of answer choices a) an increase in supply (rightward shift). b) a decrease in demand (leftward shift). c) a decrease in supply (leftward shift). d) an increase in demand (rightward shift). e) no shift in either the supply curve or the demand curve.Home has 12,000 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 100, while in banana production is 75. There is now also another country, Foreign, with a labor force of 18,000. Foreign’s unit labor requirement in apple production is 120, while in banana production is 150. Graph the relative demand curve along with the relative supply curve of banana. (Q_A^D)/(Q_B^D )=1/2*p_b/p_a ↔1/( (Q_B^D)/(Q_A^D ))=1/2*p_b/p_a Assume: Demand for apples/ demand for bananas =half of price of bananas/ price of apples What is the equilibrium relative price of banana?