If the domestic demand curve is – 0.5 Q = 10p the domestic supply curve is Q = 5p0.5, and the world price is $7.00, use calculus to determine the changes in consumer surplus, producer surplus, and welfare from eliminating free trade. The change in consumer surplus (ACS) from eliminating free trade is $. (Enter your response rounded to two decimal places.)
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- Please answer below blanks and attached pictures. When China's clothing industry expands, the increase in world supply lowers the world price of clothing. Consider the effects this has on both an importer and an exporter of clothing. Suppose the following graph represents the market for clothing in Vietnam prior to the expansion of China's clothing industry. Vietnam is an ___ of clothing because the world price is ____ the domestic equilibrium price. Note: You will have to use green points (triangle symbol) and purple points (diamond symbol) to shade the consumer and producer surplus areas on the following graphs. There are two green points and two purple points per graph. Use either one point of both to most accurately indicate the areas. For example, if indicating the consumer surplus requires only one green point, leave the second one on the palette.The domestic supply and demand equations for good A are given by Qs= P - 60 and Qd= 360-2P. The world price of the good is $90. At the current world price, how much of good A is produced domestically and how much is consumed? How much of the good is the country importing from the world? Graph the inverse domestic supply and demand equations with the world price. Show on the graph and calculate the producer surplus and consumer surplus. Suppose the government wants to support domestic producers by imposing a tariff of $30 per unit of good A imported. Compute the effect on producer and consumer surplus, the amount of revenue gained by the government and the deadweight loss. If you were a consumer of this good, would you vote for or against the new tariff? Explain your reasoning.Consider a small country that exports steel. Suppose the following graph depicts the domestic demand and supply for steel in this country. One of the two price lines represents the world price of steel. Because this country exports steel, the world price is represented by(p1 or p2) . Suppose that a “pro-trade” government decides to subsidize the export of steel by paying $10 for each ton sold abroad. With this export subsidy, the price paid by domestic consumers is $______ per ton, and the price received by domestic producers is$_______per ton. The quantity of steel consumed by domestic consumers (reamins unchanged, decrease, and increase) , the quantity of steel produced by domestic producers (reamins unchanged, decrease, and increase) , and the quantity of steel exported (reamins unchanged, decrease, and increase) . True or False: With the export subsidy, this country will start importing steel from abroad. Under the export subsidy, consumer surplus is…
- Suppose that the domestic demand and supply for milk in a small open economy are given by QD = 80 – P, QS = 40 + 2P, where P denotes price and Q denotes quantity. If the world price is $10, what is the free trade level of imports? The country imposes a quota of 4 units. Calculate and graph the following effects of an import quota: the increase in the domestic price; the quota rents; DWL. GraphConsider the supply and demand schedules in this figure (Qd=10-2P, Qs=3P). In autarky, what is the total surplus in this market? (enter a whole number, no symbols or units) Consider the supply and demand schedules in this figure (Qd=10-2P, Qs=3P). With free trade, and a world price of $1, what is the total surplus in this market? (enter a number, no symbols or units) Consider the supply and demand schedules in this figure (Qd=10-2P, Qs=3P). With trade, a tariff equal to $0.50, and a world price of $1, what is the revenue from the tariff in this market? (enter a number, no symbols or units)Consider the market for sneakers. The domestic demand equation is given by P=20−0.6QP=20−0.6Q, and the domestic supply equation is given by P=Q−10P=Q−10. The resulting no-trade equilibrium quantity is_____ and price is ________. Suppose the world supply equation is P=5P=5. The resulting equilibrium price will be _______, the total quantity of sneakers purchased is ________, the quantity of sneakers produced domestically is _______ and the quantity of sneakers imported is then _________. Suppose the government imposes an import tariff on sneakers of $4 per unit. The new equilibrium price of sneakers is _______, total imports will decrease by ________ units of sneakers, and the total revenue collected from the tariff is $______.
- Consider a small country. The domestic (home) demand is Qd = 120−3P and supply is Qs = 2P −20 whereQs and Qd are the quantity supplied and demanded, respectively, and P is the price per unit.A) Find the equilibrium price and quantity when the domestic market is closed to international trade.Now, suppose the country opens up to international trade, and the world price is $20 per unit.B) Find the new equilibrium price, domestic quantity supplied and demanded, and quantity imported.C) Suppose the domestic government imposes a tariff of $4 per unit. Find the equilibrium price, domesticquantity supplied and demanded, quantity imported, and tax revenue collected.D) Now, suppose the government impose a quota that limits the quantity of imports to 20 units. Find thenew equilibrium price, domestic quantity supplied and demanded, and quantity imported.E) Calculate Consumer surplus, producer surplus, and total surplus, with free tradeF) Calculate Consumer surplus, producer surplus, tax revenue,…Suppose that when a country opens to free trade in a good, the price of that good rises from $10 to $15. As a result, the domestic quantity supplied rises from 1,000 to 1,020 and the domestic quantity demanded falls from 1,000 to 500. What are the gains from trade? Assume linear domestic supply and demand curves.The figure shows a country’s domestic supply and demand curves for a good, as well as the world price, Pw, for the good that it faces, as a small country, on the world market. Initially, the country is exporting X1 units of that good at that price. Suppose that producers in this industry lobby policy makers to provide them with some sort of assistance to help them export even more. Policy makers are considering an export subsidy. What area represents the cost of this subsidy to the government (taxpayers)? Group of answer choices b+c+d a+b+c+d c+d a+b+c
- The figure shows a country’s domestic supply and demand curves for a good, as well as the world price, Pw, for the good that it faces, as a small country, on the world market. Initially, the country is exporting X1 units of that good at that price. Suppose that producers in this industry lobby policy makers to provide them with some sort of assistance to help them export even more. Policy makers are considering an export subsidy. What area represents the benefit to the producers from this subsidy? Group of answer choices b+c+d a+b+c c+d a+bAssume that the domestic supply and demand for a good are given by the following equations. Q= 400 - 30 P Q = 50 + 20Pa. If the world price is $4, what is the free trade level of imports?Calculate the net welfare effects of a quota of 50 units. (Quota rent captured by the government) Use also graph to show the effects of this quota. b. Imposing %25 tariff is much better than imposing a quota of 50 units, when net welfare cost is considered. Do you agree or disagree? When answering this question, assume that all the quota rents will be gained by the government.For a small country called Boxland, the equation of the domestic demand curve for cardboard is QD = 210 − 2P, where QD represents the domestic quantity of cardboard demanded, in tons, and P represents the price of a ton of cardboard. For Boxland, the equation of the domestic supply curve for cardboard is QS = –90 + 3P, where QS represents the domestic quantity of cardboard supplied, in tons, and P again represents the price of a ton of cardboard. . If Boxland prohibits international trade in cardboard, then the equilibrium price of a ton of cardboard is