The graph above is the United States supply and demand schedules for Digital Cameras trading in an open market. In the United States, there is a "one worker to one camera" ratio. If the US produces one additional camera, then it employs one additional worker." The Questions (Please answer all components of the question. Economics argues that tariffs have a negative impact on trade. Using the prices and quantities on the graph above discuss the impact of 1. Define the World Price as well as the Tariff Value (per unit) and gross revenue for the country collected from the tariff. (all items, whole number, no decimals or $ signs. price supply domestic price $35 import price + tarif $20 demand 100 300 500 650 850 quantity World Price: Tariff Value (per unit) : Gross revenue for the country collected from the tariff. (all items, whole number, no decimals or $ signs.) 2. Examine the Country's Gains and Losses from operating at the World Price. Gains # of cameras. Loses # of workers 3. Examine the Country's Gains and Losses from operating at the Tariff Price. (Measure from closed economy) Gains # of cameras. Loses # of workers

MACROECONOMICS
14th Edition
ISBN:9781337794985
Author:Baumol
Publisher:Baumol
Chapter18: International Trade And Comparative Advantage
Section: Chapter Questions
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Question
The graph above is the United States supply and demand schedules
for Digital Cameras trading in an open market.
In the United States, there is a "one worker to one camera" ratio. If the
US produces one additional camera, then it employs one additional
worker."
The Questions (Please answer all components of the question.
Economics argues that tariffs have a negative impact on trade. Using
the prices and quantities on the graph above discuss the impact of
1. Define the World Price as well as the Tariff Value (per unit) and
gross revenue for the country collected from the tariff. (all items,
whole number, no decimals or $ signs.
price
supply
domestic
price -
$35
import price + tariff
$20
demand
100
300
500 650 850
quantity
World Price:
Tariff Value (per unit) :
Gross revenue for the country collected from the tariff. (all items,
whole number, no decimals or $ signs.)
2. Examine the Country's Gains and Losses from operating at the
World Price.
Gains # of cameras.
Loses # of workers
3. Examine the Country's Gains and Losses from operating at the
Tariff Price. (Measure from closed economy)
Gains # of cameras.
Loses # of workers
Transcribed Image Text:The graph above is the United States supply and demand schedules for Digital Cameras trading in an open market. In the United States, there is a "one worker to one camera" ratio. If the US produces one additional camera, then it employs one additional worker." The Questions (Please answer all components of the question. Economics argues that tariffs have a negative impact on trade. Using the prices and quantities on the graph above discuss the impact of 1. Define the World Price as well as the Tariff Value (per unit) and gross revenue for the country collected from the tariff. (all items, whole number, no decimals or $ signs. price supply domestic price - $35 import price + tariff $20 demand 100 300 500 650 850 quantity World Price: Tariff Value (per unit) : Gross revenue for the country collected from the tariff. (all items, whole number, no decimals or $ signs.) 2. Examine the Country's Gains and Losses from operating at the World Price. Gains # of cameras. Loses # of workers 3. Examine the Country's Gains and Losses from operating at the Tariff Price. (Measure from closed economy) Gains # of cameras. Loses # of workers
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