(square symbols) to shade the area representing government revenue received from the tariff and the tan triangles (dash symbols) to shade the areas representing the net loss or deadweight loss (DWL) caused by the tariff. PRICE (Dollars per ton) 680 Domestic Demand Domestic Supply 640 600 560 520 480 440 400 360 320 World Price Plus Tariff CS PW ↓ I PS Government Revenue 280 0 5 10 15 20 25 30 35 40 45 50 DWL QUANTITY (Thousands of tons of soybeans) Complete the following table to summarize your results from the previous two graphs. Under Free Trade (Dollars) Under a Tariff (Dollars) Consumer Surplus Producer Surplus Government Revenue 0 (?) Based on your analysis, as a result of the tariff, Colombia's consumer surplus by $ , producer surplus by $ , and the government collects $ in revenue. Therefore, the net welfare effect is a of $

QD = 100 – 2p QS = 2p – 20  Find the domestic market equilibrium. Graph the impact of opening to international trade with a world price of 48, clearly labelling the new consumer surplus and producer surplus. Find the exact numerical amounts of consumer surplus, producer surplus, government revenue, and total welfare, for the case of autarky and the case of international trade. What would happen if the government imposed a tariff of 20/unit in this market? Explain.

The nation of Bermuda is “small” and assumed to be unable to affect world prices. It importsstrawberries at the price of 10 dollars per box. The Domestic Supply and Domestic Demand curvesfor boxes are:S = 60 + 20PD = 1160 − 15P(a) if the import quota is 400 boxes then what is new equilibrium price.

Suppose the world price for a good is 40 and the domestic demand-and-supply curves are given by the following equations: Demand: P = 80 – 2Q Supply: P = 5 + 3Q 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 domestic production change? What is the change in consumer and producer surplus? How much revenue does the government earn from the tariff? What is the net national cost of the tariff?

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?

The nation of Bermuda is “small” and assumed to be unable to affect world prices. It importsstrawberries at the price of 10 dollars per box. The Domestic Supply and Domestic Demand curvesfor boxes are:S = 60 + 20PD = 1160 − 15P(a) Assume Bermuda is Completely open to trade. What is the equilibrium price and quantityconsumed?

6 Consider two countries Home and Partner trading industry goods. Partner’s supply curve can be represented as follows: XSP=P-1 Home’s import demand for industry goods is given by: MD=10-P The rest of the world is represented by the following supply of industry goods. XSRoW=P-1 a) Derive and graph Home’s import supply curve and find the equilibrium price under free trade. Quantify the amount of goods exported and imported. b) Assume that Home imposes a MFN-tariff of 1 on all industry imports. Find the new equilibrium and quantify the domestic price, border prices and quantities exported and imported. c) What happens if Home removes the tariff for imports from Partner but not from the rest of the world. Find the new equilibrium and quantify domestic price, border prices and quantities exported and imported.

Country Demand curve (P = S$) Supply curve (P = S$) Singapore P = 76 - 2Q P = 52 + 2Q Thailand P = 68 – 2Q P = 44 + 2Q (Assume that only two countries above involve in Product A in an international market)                                                   a) Compute the world equilibrium price and trade quantity for Product A.                b) If Singapore government impose tariff of S$4 per unit of Product A, draw a diagram to illustrate the costs and benefits of tariff for Singapore.                                                                               c) Based on the diagram in part (b) above, compute the following:               (i)    Producer gain                                                                                                              (ii)   Consumer loss                                                                                                          (iii)  Government revenue gain

The nation of Bermuda is “small” and assumed to be unable to affect world prices. It importsstrawberries at the price of 10 dollars per box. The Domestic Supply and Domestic Demand curvesfor boxes are:S = 60 + 20PD = 1160 − 15P(a) Assume Bermuda is Completely open to trade. What is the equilibrium price.

Consider a large country with a domestic demand characterized by the inverse demand function P=1000-Q. Domestic supply is represented by the equation P=400+Q. Finally, the world price of the good is 900. You know that an export tariff pass-through is 10%, meaning that foreign price decreases by 10% value of an export tariff t; more generally, 10% of any change in the domestic price is absorbed by the world market. a) Draw a diagram of a free trade case, label imports, consumer and producer surplus. b) Now you want to introduce export quota restrictions q. Calculate the value of the optimal export quota q, which maximizes domestic welfare. Illustrate CS, PS, QR, and DWL on your graph. Calculate their numerical values. c) Would you prefer to use an export quota or an export tariff? Explain why. Why do we see both instruments of trade policy being used? What are the advantages and disadvantages of export quotas compared to export tariffs?