Use the graph below and the following information to answer the next questions. The world price of soybeans is $3.00 per bushel, and the importing country is small enough not to affect the world price. Suppose the government puts a tariff of $2.00 per bushel on soybean imports. World price 90 105 Omillions bushels 200 210 How much will producer surplus increase?

Use the graph below and the following information to answer the next questions. The world price of soybeans is $3.00 per bushel, and the importing country is small enough not to affect the world price. Suppose the government puts a tariff of $2.00 per bushel on soybean imports. World price 90 105 Omillions bushels 200 210 How much will producer surplus increase?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter35: International Trade Restrictions

Section: Chapter Questions

Problem 9E

See similar textbooks

Similar questions

Show graphically that for any tariff, there is an equivalent quota that would give the same result. What would be the difference, then, between the two types of trade barriers? Hint: It is not something you can see from the graph.
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?
Do the rules of international trade require that all nations impose the same consumer safety standards?
The country of Pepperland exports steel to the Land of Submarines. Information for the quantity demanded (Qd) and quantity supplied (Qs) in each country, in a world without trade, are given in Table 34.6 and Table 34.7. What would be the equilibrium price and quantity in each country in a world without trade? How can you tell? What would be the equilibrium price and quantity in each country if trade is allowed to occur? How can you tell? Sketch two supply and demand diagrams, one for each country, in the situation before trade. On those diagrams, show the equilibrium price and the levels of exports and imports in the world after trade. If the Land of Submarines imposes an anti- dumping import quota of 30, explain in general terms whether it will benefit or injure consumers and producers in each country. Does your general answer change if the Land of Submarines imposes an import quota of 70?
How would direct subsidies to key industries be preferable to tariffs or quotas?
Consider two countries: South Korea and Taiwan. Taiwan can produce one million mobile phones per day at the cost of 10 per phone and South Korea can produce 50 million mobile phones at 5 per phone. Assume these phones are the same type and quality and there is only one price. What is the minimum price at which both countries will engage in trade?
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?