Price 75 70 65+ 60 Domestic supply 55 World 50 price 45 40+ F 35 30 Domestic demand 25+ 20 15 10+ 123 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Quantity Using the above figure, by how much did Total Surplus increase in the market as a result of international trade? G+ H D+F
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- 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?Suppose Home is a small exporter of wheat. At the world price of 100 US dollars per tonne, Home growers export 20 tons of wheat. Now suppose the Home government decides to support its domestic producers with a specific export subsidy of 40 US dollars per tonne. Use Figure 1 to answer the following questions: (a) Explain why consumer and producer surplus can be used to gauge the change in welfare caused by the export subsidy on individuals and firms? (b) What is the quantity exported by Home under free trade and with the export subsidy? (c) Calculate the effect of the export subsidy on consumer surplus, producer surplus, and government revenue; depict each of these in a graph. What is the overall net effect of the export subsidy on Home welfare?Domestic Demand Function: p= 80-4Q Domestic Supply Function: p= 20+2.5Q There was an international trade world price of $30 and now it dropped to $20 how will that decline the producer surplus?
- Hi can you please ONLY help me with the calculations and working of question 5? Imagine a market with demand and supply as follows: D: p=10-q and S: p=q. 1. Find the equilibrium price, quantity, producer and consumer surplus, and total welfare2. Now suppose there is a world price of $1 for the good. Which party (consumers or producers) would refuse to transact at the autarky price? Describe the new equilibrium in terms of: I. Consumer and producer surplus and welfare II. Imports 3. Now suppose a $1 tariff is introduced, making the local price $2. You may assume for now the imposition of a tariff does not change the world price. Compare welfare (including the government tariff revenue)I. With the situation before the tariffII. With the situation in autarky 4. Suppose this country is the only country in the world that demands this good. Derive a world demand for the good over the range from Price = 0 to Price = autarky Price. (hint: The world demand is the demand for imports to this…Refer to above Figure. Suppose the free-trade price is $85. Also, assume an export subsidy of $10. Calculate the total cost to the government for the export subsidy. a) $10,000 b)$14,000 c)$5,000 d)$19,000.5) Suppose Türkiye has raised taxes on avocados imported from Mexico. These taxes are an example of a(n) A) tariff. B) import quota. C) local content requirement. D) subsidy.
- The world price of cotton is below the no-trade price in Country X and above the no-trade price in country Y. Using supply and demand diagrams, show and compare the gains from trade in each country. The market for pizza is characterized by a downward-sloping demand curve and an upward-sloping supply curve. Draw the competitive market equilibrium. Label the price, quantity, consumer and producer surplus. Is there any deadweight loss? Explain. Suppose that the government forces each pizza house to pay a Php2 tax on each pizza sold. Illustrate the effect of this tax on the pizza market. Label the consumer surplus, producer surplus, government revenue, and deadweight loss. How does each area compare to the pre-tax case?(a) Explain why consumer and producer surplus can be used to gauge the change in welfare caused by the export subsidy on individuals and firms.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?
- calculate the following: change in consumer surplus, change in producer surplus, change in government revenue, consumer distortion, trade gain/loss, and net change in welfare. given that there is a tariff imposed of $5. export supply curve, Qex=3P-75 and import demand curve, Qim=15-P.a) answer question attached b) After opening up trade Consumer surplus will: (increase, decrease, stay the same), Producer Surplus will: (increase, decrease, stay the same). Total Surplus will: (increase, decrease, stay the same). c) Did opening up to trade create deadweight loss (DWL)? (yes or no)What is the Consumer Surplus after trade? A.) $6,400 B.) $9,600 C.) $12,800 D.) 14,400 What is Consumer Surplus before trade? A.) $14,400 B.) $16,800 C.) $21,600 D.) $24,800