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Graphically explain the negative effects of quotas. How about subsidies? Label and explain results in detail.
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- Analyze with the help of a graph how an export subsidy affects the terms of trade of the country providing the subsidy. Is the export subsidy desirable from the perspective of overall social welfare of the country? Explain.How Quota impacts the price difference between the domestic price and world price. Explain in detail with a graphWhich two policies that we discussed can create an excess burden? Price floors and price ceilings Price supports and subsidies Price floors and quotas on sellers Taxes and subsidies
- To determine: The impact of export subsidy.Explain the possible welfare impact of restoring the import tariff for surgical masks. Should the government impose an import quota instead? Explain your answer and use a graph to support your argumentsSuppose the market for steel is expressed as follows: Domestic demand: p = 40 - 0.2q, or q = 200 - 5p Domestic supply: p = 0.2q, or q = 5p Domestic supply (foreign): p = 0.1q, or q = 10p a) What is the equilibrium price and quantity if there is free trade, with no restriction on imports? b) What is the equilibrium price and quantity if the government imposes a binding import quota of 20 units? Depict parts a and b on a single graph. c) How are US steel firms affected by the quota? US automakers? Explain briefly.
- Please answer the all questions 45,46,47,48,49,50!!!!!!!!!!! 45. Before the price controls, the consumer surplus is:a) A+B+E b) C+D+F c) A+B+C d) D46. Before the price controls, producer surplus is:a) A+B+E b) C+D+F c) A+B+C d) D47. After the price controls, the consumer surplus is:a) A b) C+D+F c) B+C+D d) D48. After the price controls, producer surplus is:a) A b) C+D+F c) B+C+D d) D49. The impact of the price control on producer surplus is:a) -C-F b) E+F c) B-F d) C+F50. The deadweight loss caused by the price control is:a) -C-F b) -E-F c) -B-E d ) C+FImport demand is given by A by the difference between the demand for a good and the supply of a good in the world market. B the import quota C the difference between the domestic demand for a good and the domestic supply for a good. D the difference between the domestic supply for good and the domestic demand for a goodIn Agricultural Trade Agreements, three categories of distortionary policies exist, called Market access restrictions, Domestic support and Export subsidies. Discuss each of these categories using suitable examples
- Explain why consumer and producer surplus can be used to gauge the change in welfare caused by the export subsidy on individuals and firms.Draw a supply and demand diagram for the purpose of demonstrating the welfare effects of a quota in a small country. Describe prices and trade before and after the imposition of the quota. Using areas on the diagram, calculate the total gains and/or losses from the imposition of a quota. Explain the impact on the various economic actors that are affected by the quota..If tariffs, quotas, and subsidies each cause net welfare losses, why are they so common, especially in agriculture, among the industrialized countries such as the United States and the members of the European Union?