Home's demand curve for wheat is P = 10 - (1/20)Qd. Its supply curve is P = 4 + (1/20)Qs Eoreign's demand curve for wheat is P * = 8 - (1/20)Qd* Its supply curve is P* = 2+(1/20)Qs* Determine the effect of the tariff on Home import-competing producers APS = Home consumers ACS = Home government tariff revenue AGR =
Q: Your friend Tim wants to open a checking account, but he's not sure how to do it. List the steps.
A: A checking account is a sort of bank account that enables you to deposit and receive money for…
Q: need help with econ multiple hw questions asap! 106) A firm’s demand for a factor of production is…
A: Demand curve shows an inverse relationship between price and quantity demanded and it slopes…
Q: If apples have an own price elasticity of -1.2, we know the demand is elastic. Can you explain why?
A: In the question, elasticity of demand for apples is -1.2. In price elasticity, we ignore the…
Q: Explain briefly three important reasons why firms have sticky prices in the short run. Given an…
A: A firm is a producer who sells the goods at a higher price in the market to generate more profit. It…
Q: d. In addition to k = 0, now assume Po = 0 and determine the price in periods 1, 2, 3 and 4. Plot…
A: since you have asked multiple questions and according to policy we can solve only 1 question and for…
Q: should nation-states relinquish responsibility for the social reproduction of migrant labor? Why or…
A: Protecting and assisting the poor and vulnerable, such as children, women, the elderly, people with…
Q: In order for a higher-cost alternative to be attractive, the incremental benefit-cost ratio must be…
A: At the marketplace, minimum acceptance rate of return is the one that is the minimum return that an…
Q: In order for a higher-cost alternative to be attractive, the incremental benefit-cost ratio must be…
A: The benefit-cost ratio is a pointer showing the connection between the relative expenses and…
Q: The famous singer Jason Lumberpond likes to drive his solid-gold rocket car back and forth in front…
A: In most decision-making scenarios, especially in economics, a standard thumb rule is considering the…
Q: Choose from the two machines which is more economical. Machine A Machine B First Cost Salvage value…
A: Annual cost of machine A = 3000 + 1200 + (8000 x 3%) = 4440Present value of machine A= - 8000 -…
Q: The impact of an increase in government spending would be to a) increase the interest rate b) leave…
A: Government spending is spending on infrastructure, roads and highways, national defense and…
Q: Calculate your income demand elasticity of demand as your income increases from $10,000 to $12,000…
A: Income elasticity of Demand (I.Ed) = %change in quantity demanded%change in Income Given that: I1 =…
Q: 1. A Student buys a car for $26,000 with $2000 down payment. He pays the balance in 48 equal monthly…
A: Given, Value of car = $26,000 Down payment = $2,000 Rest of amount = Principal (P) = 26,000 -…
Q: Jim's Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demands and selling…
A: Revenue is the total income that is derived from the normal operations and activities of a company.
Q: Suppose that the price of product A decreases from $22 to $18 and, as a result, the quantity…
A: Cross price elasticity measures how quantity demanded of a good changes when price of the other good…
Q: Assume two gas stations, Speedy Gas and Quick Fuel, control the market for gasoline at a certain…
A: In Cournot duopoly two firms compete in quantity to maximize profit.
Q: (a) Explain the difference between government spending and the government Purchases of goods and…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: Categorize the reasons dealing with unemployment is different in low and middle income countries…
A: PLEASE FIND THE ANSWER BELOW.
Q: In order for a higher-cost alternative to be attractive, the incremental benefit-cost ratio must be…
A: At the marketplace, the incremental benefit-cost ratio is used to explain the per unit difference in…
Q: What are the problems faced by the avg production system in a developing country and what methods…
A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…
Q: Identify two (2) derivative investment products and how they allow investors to hedge against risk…
A: A derivative is a contract between two or more parties whose value is determined by an underlying…
Q: With a strict product liability claim, only the seller of the product is liable. True False
A: The blame idea of "strict liability" in personal injury law states that a defendant seller,…
Q: Figure 15-3 Panel a Panel b MC MC ATC MR MR Panel e Panel d MC ATC LRAC MR Refer to Figure 15-3. In…
A: In this figure monopolist is making profit in panel,
Q: B. Refer to the figure below. LRAC a. In the short run, capital is a fixed cost. Draw for a few…
A: Short Run Average Cost (SRAC) is equal to average fixed cost and average variable cost. It is…
Q: The graph below shows the Lorenz curves of two different countries stylistically called ‘red’ and…
A: The Gini index, often known as the Gini coefficient, measures income distribution throughout a…
Q: 9. Assume the central bank has an established reserve requirement of 10%. It then decides to lower…
A: Here, it is given that the current required reserve ratio is 10% and central bank decided to…
Q: ATC ATC2 ATC3 ATCA 8. 2 4 8. 10 Quantity (thousands of copies per day) A copy shop is choosing…
A: Average Total Cost is the sum of all costs incurred divided by the total number of units produced.…
Q: machine purchased a year ago for $85,000 costs more to operate than anticipated. At the time of the…
A: All answers given below,
Q: Each individual's lifetime budget constraint is given by C1 + C2/(1 + r) = Individuals choose…
A: *Answer:
Q: value is $12,000. The annual insurance cost is 5% of the purchase price. The electricity co is $ 800…
A: Given, Purchasing price of an equipment = $100,000 Electricity cost = 800 each year Replacement part…
Q: The price of a daffodil is $0.97. When average income is $52,000 demand for daffodils is given by P…
A: Income elasticity of demand measures the responsiveness of quantity demanded with respect to change…
Q: One advantage of the use of patents over the use of subsidies and prizes is that patents: can be…
A: Concepts: 1) Patents: Patents can be understood as the exclusive right to use and sell the…
Q: Suppose that the market demand for facial mud packs are given as follows: P = 2,200 – Q. Mud packs…
A:
Q: Suppose the U.S. has a closed economy with GDP (Y) equal to $19.4 trillion, consumption (C) equal to…
A: GDP refers to the sum of all the values of the goods and services at market prices of a country. The…
Q: A. Consumer surplus and deadweight losses are transformed into monopoly profits. B. Consumer…
A:
Q: Two firms compete by choosing price. Their demand functions are: Q1 = 20 -P1 +P2 and Q2 = 20 - P1 +…
A:
Q: --; 1 1 Find if the following is homothetic: F(x,y) =
A: Finding the slope of the given function by treating it as the consumption function.
Q: Explain how economic and manufacturing developments, coupled with political developments, cemented…
A: There were many dynasties that took place in China while the two most important dynasties here…
Q: The refinery at Petrotrin receives barrels of Oil from Suriname Under Processing Agreement (u.p.a),…
A: The above question is based on the holding out of ownership of assets legally and utilizing the…
Q: In order for a higher-cost alternative to be attractive, the incremental benefit-cost ratio must be…
A: In a market, when an individual decides to make an investment, an investment will be considered as…
Q: According to the loanable funds model, decreasing the amount of saving and increasing the amount of…
A: A loanable funds market is the place where people interact to make an exchange of funds that are…
Q: oods and Services are exchanged and used As Final Consumption For Investment As Inputs in the…
A: Answer is given below
Q: ($/Unit) Marginal Cost Q1 Quantity (Units per time period) In the above diagram, marginal cost…
A: Concept: Marginal cost refers to the cost incurred by a firm to produce an additional unit of…
Q: Subject: Manegerial economics & policy Case study: PC World PC World is a major retailer of…
A: A complementary goods is a good whose utilization is connected with the utilization of a related or…
Q: The savings rate in a country is 25%. The government wants to expand GDP by $300 Billion. How much…
A: The savings rate in a country is 25%. The government wants to expand GDP by $300 Billion.
Q: ($/Unit) Marginal Cost Q1 Quantity (Units per time period) In the above diagram, marginal cost…
A: Marginal cost is defined as the additional cost incurred on producing an extra unit of goods and…
Q: 3. Monopolistic Competition i. Discuss the main characteristics of the monopolistically competitive…
A: The monopolistic market is characterized by the many firms and these firms produce the…
Q: FarCry Industries, a maker of telecommunications equipment, has 2 million shares of common stock…
A: Answer is given below
Q: A firm with only fixed costs will have which of the following average cost relationships? As…
A: Average Total Cost is calculated by dividing the total cost with units of output. Average Cost =…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- What is the effect of a tariff on consumer and producer surplus? Under which conditions is protectionism advisable? Discuss with reference to at least one case study and examine distributional consequences.Assume that the domestic supply curve for crude oil is S(P) = 5P and the domestic demand curve for crude oil is D(P)=500-20P. Further assume that domestic oil refiners face a perfectly elastic supply of oil imports at P = 16. a. Derive the domestic price, the quantity processed by domestic oil refiners, and the amount of imports at the competitive equilibrium. Show the results on a well-labeled graph. Now suppose that the domestic crude oil suppliers face a price ceiling of 8. Further suppose that for each two units of crude oil purchased, a domestic oil refiner gets one entitlement to domestic crude oil. Derive the marginal price of crude oil faced by domestic oil refiners. Add this to the graph in part (a). Derive the effect of regulation on the amount of crude oil processed by domestic oil refiners and the amount of imports. Show this on the graph from part (a). Derive the welfare effect of regulation on U.S. Shade in the welfare losses in the graph for part (a).b. The United States currently imports all of its coffee. The annual demand for coffee by U.S. consumers is given by the demand curve Q = 250 – 10P, where Q is quantity (in millions of pounds) and P is the market price per pound of coffee. World producers can harvest and ship coffee to U.S. distributors at a constant marginal (= average) cost of $8 per pound. U.S. distributors can in turn distribute coffee for a constant $2 per pound. The U.S. coffee market is competitive. Congress is considering a tariff on coffee imports of $2 per pound. i. If there is no tariff, how much do consumers pay for a pound of coffee? What is the quantity demanded?ii. If the tariff is imposed, how much will consumers pay for a pound of coffee? What is the quantity demanded?
- If economy is open to foreign trade of good X, imposing a tariff will reduce total surplus (total surplus being defined as consumer + producer surplus). Which of the following ideas best describes why we observe tariffs being use in practice? Basically, what is the effect of tarrifs? a. The government can be under political pressure to implement inefficient economic policy. b. The tariff revenue raised will outweigh efficiency losses. c. Economic analysis does not fully explain efficiency losses. d. Economic stability is not often a political incentive.Foreign's demand curve for wheat is p*=8-1/20q*d. Its supply curve is p*=2+1/20q*s Determine the effect of the tariff onConsider a city with the following characteristics: i. Price elasticity of city’s output (export good) is -3.0. ii. The elasticity of labor supply with respect to environmental quality is 0.10. iii. If output changes by x% labor demand changes by x%. Suppose that the city adopts a new environmental policy that increases the city’s environmental quality by 10% and increases the price of the city’s export good by 2%. a. By what percentage will the demand for labor change (shift)? b. By what percentage will the supply for labor change (shift)? c. Under what conditions (what values of the relevant elasticities) will the equilibrium number of workers increase? Illustrate your answer with a graph.
- A(n) tariff rate quota voluntary import restraint quota rent is in place when a lower tariff rate is applied to imports within the governme import quota O import dutyThe demand curve for wine in Italy is given by D = 20 2P. Its supply curve is given by S = 2P – 4. Italy is a small country. The price of wine in the world market is $3. Suppose that the Italian government's objective is to protect the domestic wine industry. It imposes a specific tariff of $2 on wine imports. The optimal tariff (i.e., the tariff that maximizes Italy's welfare) on wine for Italy is: 0 1 2 3 none of theseBelow is a hypothetical example of an estimated industry supply curve for automobiles.Qs = 4000P – 50,000PL - 3,700PT – 400,000PK - 1000T Where:P : Average Price of an AutomobilePL: Average Price of Labor per Hour (the wage rate)PT: Average Price of TrucksPK: Price of Capital – Interest Rate – iT: Tariff on Imported Cars Assume:PL = $30 per hour PT = $15,000PK = 10%T = $1,000 PL = $30 per hour Slope parameter associated with the average price oflabor is -50,000PT = $15,000 Slope parameter associated with the average price oftrucks is -3,700PK = 10% Slope parameter associated with the price of capital (theinterest rate) is -1,000 (in your equation express theprice of capital as 10)T = $1,000 Slope parameter associated with the tariff is – 1,000 a. Derive the supply curve for automobiles as a function of price holding all other things constant. b. Graph the supply curve in linear form as a function of price only indicating the quantity supplied at a price of -0- or the vertical…
- A foreign firm sells smartphones to a home country. The demand for smartphones in the home country is given by the demand curve: Qd = 100 - 2P. The foreign firm ahs marginal cost of production of MC = 2 + Q and MR = 50 - Q. A) Calculate the equilibrium price and quantity of smartphones sold in the foreign market. Now, assume the home country opens for trade and has vertical import demand (and MR*) at P^x = $30. Assume the foreign firm will price discriminate. B) Calculate the firms overall output. C) Calculate the quantity and price in the foreign market. D) Calculate the quantity and price in the home market.Part F. If home country imposes a specific tariff of $15 per unit of good Y imported, what is the tariff revenue? Show your work. Part G. Assume that instead of a specific tariff, an import quota will be used on good Y. What is the amount of the quota that will have identical effects (in terms of amount of good Y imports and the domestic price of good Y) as the specific tariff of $15? Explain your reasoning. Part H. Consider the use of import tariff vs. import quota in Home country that will result in the same amount of good Y imports and the domestic price of good Y. If quota rents are given to Foreign country, which policy, i.e., import tariff vs. import quota, is preferable by Home country on the basis of its effect on social welfare? Explain your reasoning.Consider a competitive market served by many domestic and foreign firms. The domestic demand for these firms’ product is Qd = 600 − 2P. The supply function of the domestic firms is QSD = 200 + P, while that of the foreign firms is QSF = 250. a. Determine the equilibrium price and quantity under free trade. b. Determine the equilibrium price and quantity when foreign firms are constrained by a 100-unit quota. c. Are domestic consumers better or worse off as a result of the quota? d. Are domestic producers better or worse off as a result of the quota?