Siiš the producd supply after an import quota is imposed. Sao GLHE WXYZ Quantity to the figure above to answer the following question. ming there is no tariff, the imposition of the import quota: will increase the revenues of foreign producers by area F+J leads to an extra revenue to forcign producers equal to areas G+ H, which partly coun they bear because of lower quantities supplied

Siiš the producd supply after an import quota is imposed. Sao GLHE WXYZ Quantity to the figure above to answer the following question. ming there is no tariff, the imposition of the import quota: will increase the revenues of foreign producers by area F+J leads to an extra revenue to forcign producers equal to areas G+ H, which partly coun they bear because of lower quantities supplied

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter34: Globalization And Protectionism

Section: Chapter Questions

Problem 55P: Assume two countries, Thailand (T) and Japan (J), have one good: cameras. The demand (d) and supply...

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Assume two countries, Thailand (T) and Japan (J), have one good: cameras. The demand (d) and supply (s) for cameras In Thailand and Japan is described by the following functions: QsT=-5+14P QsJ=-10+14P QdT=60-P QdJ=80-P P is the price measured in a common currency used in both countries, such as the Thai Baht. Compute the equilibrium price (P) and quantities in each country without trade. Now assume that free trade occurs. The free-trade price goes to 56.36 Baht. Who exports and Imports cameras and in what quantities?
Explain how a tariff reduction causes an Increase in the equilibrium quantity of imports and a decrease in the equilibrium price. Hint: Consider the Work It Out Effects of Trade Barriers.
Are the gains from international trade more likely to be relatively more important to large or small countries?
How do trade barriers affect the average Income level in an economy?