Use the green point (triangle symbol) to shade consumer surplus in Cambodia before China's clothing industry expands. Then use the purple point (diamond symbol) to shade producer surplus.

Q: If the demand of an imported good is perfectly inelastic, a tariff imposed on its import will be: a.…

A: When demand for the imported good is perfectly inelastic, quantity demanded does not decrease at all…

Q: Explain the possible welfare impact of restoring the import tariff for surgical masks. Should the…

A: Welfare impact: It refers to the impact of the government policy on the economy. It takes into…

Q: Consider a smail country where the domesbic market for sandals is described by the following demand…

A: Since you have posted multiple question, as per answering guideline we will solve first question…

Q: bottom half    When Venezuela allows free trade of soybeans, the price of a ton of soybeans in…

A: Producer surplus refer to the difference between the minimum acceptance price of the producer and…

Q: Suppose a small country introduces an import tariff and the the revenues from the tariff are…

A: Here, it is given that a small open country imposes tariff on imports and redistributed the tariff…

Q: A quota creates "deadweight loss" because it does which of the following? A. decreases corporate…

A: Deadweight loss: Consumers buy more of a product than they would otherwise be based on their…

Q: d. Determine the quantity imported before and after the tariff. e. Determine the consumer surplus…

A: Before tariff is imposed: The quantity imported was (Qd - Qs) = (160 - 40) = 120 units.   After…

Q: Price P1 P2 D Quantity Q1 Q2 Q3 Figure 3 Domestic market for a good Figure 3 shows a country's…

A: Doemstic market equilibrium with no trade occurs when Demand and supply of goods are equal at…

Q: Use the green point (triangle symbol) to shade consumer surplus, and then use the purple point…

A: International trade refers to the exchange of goods and services across the world. Import refers to…

Q: Assume that, under autarky, coffee is cheaper in Brazil than in Japan. How does the price of coffee…

A: Here, it is given that the autarky price of coffee is less in Brazil as compared to Japan.

Q: Consider Figure 4.1. In the absence of trade, Mexico's producer surplus and consumer surplus…

A: Equilibrium in the market occurs at the intersection of demand and supply curves.

Q: One of Morocco's top import goods is wheat. Domestic market demand is described as Qn = 69- 3P, and…

A: Domestic Market Demand function shows the relationship between quantity demanded and price of the…

Q: If a small country uses a quota to limit imports of a particular product, producers in the foreign…

A: Quota: It is a type of trade restriction that is used by the government to restrict the import and…

Q: the past, Canada has agreed to set an upper limit on the total amount of softwood lumber exported to…

A: A country will export a good in which it has abundance production. This implies if quantity supplied…

Q: government prefers to reduce imports with a tariff instead of a quota depends on whether A. imports…

A: In an open economy, tariffs and quotas are the two types of trade barriers used by the government of…

Q: If the US government reduces the tariff on imported coffee will this affect the supply or the demand…

A: The trade is the exchange of goods and services between the producer and the consumer at a mutually…

Q: As a result of the decrease in the world price, consumer surplus in the United States million, and…

A: We can find the change in  surplus by finding the corresponding change in area. Consumer surplus is…

Q: trade deal, Japan will bring its tariff on canola oil down to zero.  Using the hypothetical Japanese…

A: Total surplus= consumer surplus+producer surplus

Q: The supply and demand for wheat in the small country Tinyland are: Qs = P and Qd = 400 – P,…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Exporting countries Which of the following will be true, everything else remaining constant, for a…

A: Goods and services produced in one country and sold to consumers in another are known as exports.…

Q: A government tariff will result in   a. deadweight losses.   b. higher prices for the goods…

A: In this case, tariff increase the market price and leads to shift the demand or supply curve to the…

Q: When trade in coffee is allowed with the rest of the world, consumer surplus decreases by $340.…

A: Consumer surplus before trade = 0.5 * (140-90) * 30 qty = 750 Consumer surplus after trade = 0.5 *…

Q: Use the green point (triangle symbol) to shade consumer surplus in Cambodia before China's clothing…

A: Consumer surplus is the difference between the consumer's willingness to pay and the actual price…

Q: When Venezuela allows free trade, the country's consumer surplus by and producer surplus by So, the…

A: Without free trade, the consumer surplus(CS) is $8,750. CS is the area under the demand(DD) curve…

Q: overall, exporting countries _are harmed by, or benefit from, or are not affected by the fall in the…

A: Consumer surplus is the difference between the maximum price a consumer is willing to pay for a…

Q: an economy formerly in autarky opens to trade, and discovers that there is excess supply of a good…

A: In autarky economy is having closed trade.

Q: Use Supply and Demand graphs to support your answer in each of the following cases: A: What happens…

A: Part d)When there is an export duty imposed on exports, producers don't get the world price for…

Q: On the following graph, use the black line (cross symbol) to indicate the domestic price of aluminum…

A: Given: The tariff imposed on aluminium=$100 per tonne

Q: If tariffs, quotas, and subsidies each cause net welfare losses, why are they so common, especially…

A: Tariffs , quotas and subsidies are all different forms of protectionism. Protectionism means trying…

Q: Partial equilibrium effects of import quota: large country Can you show that with the graph?

A: The concept "partial equilibrium" refers to a study that only considers the effects of a policy…

Q: Suppose Bolivia is open to free trade in the world market for wheat. Because of Bolivia's small…

A: At world price: consumer surplus = 0.5 (490 - 250) (160-0) => consumer surplus = 19,200 ----…

Q: Suppose Country X exports good A and imports good B. And, Country Y exports good B and imports good…

A: Global exchange or trade will in general diminish the costs of utilization merchandise, making…

Q: The United States represents a small part of the world orange market.     Draw a diagram…

A: When the world price is lower than the domestic equilibrium price, we have increase in welfare for…

Q: In a single year, Germany can raise 100 tons of wheat or produce 1,000 boxes of daisies. In the same…

A: Answer - Production of Germany: Wheat=100 tons Daisies=1000 boxes   Production of France: Wheat=50…

Q: The aim of a tariff is to: (a) maximise total surplus. (b) protect domestic consumers. (c) protect…

A: Tariff is one of the government action in an open economy when it imposes tax on the imported goods…

Q: Which of the following is likely to occur if a tariff is imposed on the market? (Assume that the…

A: Imports refers to the difference between quantity supplied and quantity demanded. Imports occur when…

Q: The analysis of a quota implies that ....   please select one or more : a) The effect of a quota…

A: The imposition of government on the trade restrictions limits the quantity for the consumers to…

Q: Country C imports 80,000 metric tons of steel from Country U and produces domestically 80,000 metric…

A: Given, Quantity demanded in country C ( Qd )=  160,000 Metric ton Quantity supplied in country C (…

Q: Economics When a new tariff is placed on imported furniture, which of the following is expected to…

A: Consumer surplus is the difference between the maximum willingness to pay of the consumer and the…

Q: A trade surplus occurs when..............exceeds..............

A: Expenditure approach: GDP = consumption + investment+ government expenditure + net exports where,…

Q: Economists argue for free trade in import markets because importing goods decreases total surplus no…

A: The Economists argue for free trade in the import markets because the gains to the US consumers…

Q: Which of the following would benefit producers, harm consumers and reduce total surplus? Increase of…

A: Disclaimer- “Since you have asked multiple question, we will solve the first question for you as per…

Q: P Supply А Pa B D Pw C Demand Q Which area in the above graph represents the loss in total surplus…

A: The demand curve shows the relationship between price and quantity demanded of a good. The supply…

Q: If an economy is open to foreign trade of good X, imposing a tariff will reduce total surplus (total…

A: The loss in consumer surplus due to tariff exceeds gain in welfare because of tariff revenue and…