Using a graph of offer curves, for each of the following, identify the effect of the change listed on the relative price of good Y and on exports of good Y by Nation 2. The demand for X increases in Nation 2. The supply of Y increases in Nation 2.
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Using a graph of offer
- The demand for X increases in Nation 2.
- The supply of Y increases in Nation 2.
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- Using a graph of offer curves, for each of the following, identify the effect of the change listed on the relative price of good X and on exports of good X by Nation 1. The supply of Y increases in Nation 2. The demand for X decreases in Nation 1. Using a graph of offer curves, for each of the following, identify the effect of the change listed on the relative price of good X and on exports of good X by Nation 1. The supply of Y increases in Nation 2. The demand for X decreases in Nation 1.In August 1990, many countries decided to retaliate against Iraq for invading Kuwait by refuse to trade with Iraq. What would happen to Iraq's terms of trade and volume of trade If Iraq is in the "inelastic" portion of its offer curve ? Please answer the question with explanation and graph and put Iraq's import good on x-axis.The dollar–yen exchange rate falls from 100 to80 yen per dollar. At the same time, the price levelin the United States rises from 180 to 200, and theprice level in Japan remains the same. As a result,a. American goods have become more expensiverelative to Japanese goods.b. American goods have become less expensiverelative to Japanese goods.c. the relative price of American and Japanesegoods has not changed.d. both American and Japanese goods have becomerelatively less expensive.
- Offer curves tell usa) The demand and supply of both goods at different relative pricesb) The demand for import good only at different relative prices.c) The supply of export good at different relative prices.d) None of the above.One of these four answers represents the result of a rise in tariff on imported cars from a foreign country. Which one? Group of answer choices The supply of foreign cars to the domestic market would be reduced, causing car prices to rise. The domestic price of cars would fall. The number of unemployed workers in the domestic car industry would rise. The demand for imported cars would increase, causing the price of cars to increase in other nations.Graphically explain the effect of the following on the equilibrium:(1) Offer of subsidies(2) Increase in price of factors of production(3) Increase of young population in a destination commonly known for consumption of elderly products(4) Improvement of technology(5) Increase in price of one of a complementary good
- In the domestic market with no trade, the equilibrium price is _____ and the quantity traded is ____ units a. $90, 1,150 b. $60, 650 c. $60, 1,150 d. $40, 1,800The following graph shows the domestic market for oil in the United States, where SDSD is the domestic supply curve, and DDDD is the domestic demand curve. Assume the United States is considered a large nation, meaning that changes in the quantity of its imports due to a tariff influence the world price of oil. Under free trade, the United States faced a total supply schedule of SD+WSD+W, which shows the quantity of oil that both domestic and foreign producers together offer domestic consumers. In this case, the free-trade equilibrium (black plus) occurs at a price of $240 per barrel of oil and a quantity of 9 million barrels. At this price, the United States imports 6 million barrels of oil. Suppose the U.S. government imposes a $60-per-barrel tariff on oil imports.Suppose the domestic autarky relative price M/S = 1 and autarky consumption takes place at (M,S) = (100,100). Production with free trade takes place at (M,S) = (50,160) with 50 units exported and 60 units imported. Find the consumption bundle (M,S). Sketch the trade triangle. What are the terms of trade?
- Explain with the help of a graph the effect of an increase in the relative price of the exported good of a country on its welfare.Refer to the graph to answer this question. Based on the Tariff graph, which of the following statements is most true? A. Government revenue is reduced by a tariff. B. A tariff increases consumer surplus. C. A tariff reduces consumer surplus. D. A tariff increases imports.On the following graph, use the tan line (rectangle symbol) to draw the new total schedule including the tariff (SD+SW+ST). Then use the grey point (star symbol) to indicate the new market equilibrium price and quantity as a result of the tariff. The tariff’s revenue effect (the import tariff multipled by the quantity of oil imported) can be broken into 2 opponents: domestic revenue effect and terms-of-trade effect. On the previous graph, use the green rectangle (triangle symbol) to indicate the dosmetic revenue effect of the tariff. Then use the purple rectangle (diamond symbols) to indicate the terms-of-trade effect. Now consider the effect of the tariff on welfare in the United States. On the previous graph, use the black triangles (plus symbol) to indicate the deadweight loss caused by the tariff. Question: True or false: National welfare in the United States decreases as a result of a $100-per-barrel tariff on oil imports. Explain.