Hi Could you please answer this question thank you QuestionsSuppose foreign pharmaceutical distributors from Zargadee are currently prohibited from sellingdrugs in the U.S. Assume that foreign drugs are identical to drugs produced domestically.Suppose that the U.S. does not import drugs produced in Zargadee from any other country.a. Use supply and demand analysis to show how the exclusion of imported drugs from Zargadeeaffects the equilibrium price and quantity of drugs in the U.S. market.b. How much does the quantity of drug imports decrease as a result of the regulation? Explainusing your graph.c. According to the article, are consumers in favor of drug importation from Zargadee? Explainusing your graph.d. According to the article, are U.S. drug producers in favor of drug importation from Zargadee?Explain using your graph.e. If Congress wanted to maximize total surplus, should it allow importation or not? Explainusing your graph.f. If drugs from Zargadee were not identical to other drugs, briefly describe how that differencewould be a problem for your analysis.

Answered: Questions Suppose foreign…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 53P: Table 3.8 shows information on the demand and supply for bicycles, where the quantities of bicycles...

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Hi Could you please answer this question thank you

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Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and specify the other subparts (up to 3) you’d like answered.

For simplicity, we assume there are just two countries. The US and Zargadee. The US is the importing nation.

We use the following graph to build up the explanation:

In the above figure,

DD is the domestic demand curve

DS is the domestic supply curve

In a free trade scenario, P* is the free trade price and the excess demand over domestic supply at the free trade price would have been the import quantity of drugs by the US shown by the green line.

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