The government decided to impose a quota on the imported cheese in the quantity q2. b. Which area represents the consumer and producer surplus after imposing the quota? ' c. Which area represents the deadweight loss?' d. How a quota policy causes inefficiencies. P4 P, a P. f P. p* p5
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- 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?Suppose a domestic market in a country is perfectly competitive. The domestic market is small and cannot influence the international price. Assume the country imports from the international market. Which of the following is correct about the effect of an import quota? Group of answer choices A) Increases domestic producer surplus B) Increases import quantity C) Increases total surplus in the domestic market D) Decreases total domestic quantity supplied E) None of the abovePlease see attachment and show your work . What are the steps and answer with explanation? Please examine the market for AC units below. In this market, the Home nation has imposed a quota limiting the number of AC units that foreign nations are allowed to export into the Home economy. If the home nation increased the level of the quota (theerby allowing more AC units to be imported into the Home economy), then we would expect ___________ to increase in the home economy. 1. consumer surplus 2. producer surplus 3. quota revenue 4. deadweight loss
- Please no written by hand solution Which of the following statements is not generally true of a production quota? a. The market will not clear due to the excess supply of that good. b. Consumer surplus increases when compared to the market before the quota. c. Producer surplus may increase or decrease. d. Some of the consumer surplus will be transferred to producersUsing demand and supply, illustrate the effects of a quota imposed by the Ghanaiangovernment on Cote d’Ivoire cocoa. Show the Cote d’Ivoire cocoamarket and the Ghanaiancocoamarket.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?
- Which of the following is an example of a quota? a) The United States sets a minimum or maximum price that can be charged for baked goods. b)The United States limits the number of immigrants allowed to enter the country. c) The United States sets a limit on how many firms can operate in the market for cell phones. d) The United States imposes a regulation requiring consumers to be licensed before buying pens.Suppose a domestic market in a country is perfectly competitive. The domestic market is small and cannot influence the international price. Assume the country exports to the international market. Which of the following is correct about the effect of a tax per unit purchased in the country? a. The domestic producers supply more to the domestic market b. Increases export quantity c. Increases total quantity supplied d. Decreases total quantity supplied e.None of the aboveSuppose now the government decides to increase the number of quotas available to 72 units, but it keeps the price support at the current level of $72. Calculate (I) the consumer surplus (ii) the producer surplus (iii) deadweight loss (iv) Which of the two options would be preferred by the producers (v) Which of the two options would be preferred by society as a whole.
- 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 an specific export subsidy of 40 US dollars per tonne. Use Figure 1 to answer the following questions: I'll attach the graph below 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?Suppose Home is a small exporter of wheat. At the world price of 100 US dollars per tonne, Home growersexport 20 tons of wheat. Now suppose the Home government decides to support its domestic producers withan specific export subsidy of 40 US dollars per tonne. Use Figure 1 to answer the following question A. ) 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?Suppose the government imposes a quota on imports of foreign-made steel. Assume that the quota has an effect on the market for steal. The result will be that the domestic price of steel Answer 1 Question 8, the domestic production of steel Answer 2 Question 8, and imports of foreign-made steel Answer 3 Question 8