EP ECONOMICS,AP EDITION-CONNECT ACCESS
20th Edition
ISBN: 9780021403455
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 38, Problem 5DQ
To determine
The export supply curve, the import demand curve and their impact to determine the equilibrium world price.
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Students have asked these similar questions
Price (dollars per shirt)
44
40
36
32
28
24
20
16
12
O
8
O 32 million
The figure shows the market for shirts in the United States, where D is the domestic demand curve
and S is the domestic supply curve. The world price is $20 per shirt. The United States imposes a
tariff on imported shirts, $4 per shirt.
24 million
S
In the figure above, with the tariff the United States imports
8 million
D
O 16 million
16 24 32 40 48 56 64
Quantity (millions of shirts per year)
million shirts per year.
A small country is facing the following domestic supply curve of a product: S = 200 + 20P,
as well as the following domestic demand curve of a product: D = 400 - 20P. It can import
it at a world price of 10 per unit. In addition, each unit of production yields a marginal
social benefit of 10. The effect on welfare of an import tariff of 6 per unit is $.
O -420
O 500
O -480
O 420
O 320
-500
O :180
O -320
480
O 180
5. Suppose that the comparative-cost ratios of two products-
baby formula and tuna fish-are as follows in the hypotheti-
cal nations of Canswicki and Tunata:
Canswicki: 1 can baby formula = 2 cans tuna fish
1 can baby formula = 4 cans tuna fish
Tunata:
In what product should each nation specialize? Explain why
terms of trade of 1 can baby formula =
would be acceptable to both nations.
25 cans tuna fish
Chapter 38 Solutions
EP ECONOMICS,AP EDITION-CONNECT ACCESS
Ch. 38.2 - Prob. 1QQCh. 38.2 - Prob. 2QQCh. 38.2 - Prob. 3QQCh. 38.2 - Prob. 4QQCh. 38 - Prob. 1DQCh. 38 - Prob. 2DQCh. 38 - Prob. 3DQCh. 38 - Prob. 4DQCh. 38 - Prob. 5DQCh. 38 - Prob. 6DQ
Ch. 38 - Prob. 7DQCh. 38 - Prob. 8DQCh. 38 - Prob. 9DQCh. 38 - Prob. 10DQCh. 38 - Prob. 11DQCh. 38 - Prob. 12DQCh. 38 - Prob. 13DQCh. 38 - Prob. 14DQCh. 38 - Prob. 1RQCh. 38 - Prob. 2RQCh. 38 - Prob. 3RQCh. 38 - Prob. 4RQCh. 38 - Prob. 5RQCh. 38 - Prob. 6RQCh. 38 - Prob. 7RQCh. 38 - Prob. 8RQCh. 38 - Prob. 9RQCh. 38 - Prob. 10RQCh. 38 - Prob. 11RQCh. 38 - Prob. 12RQCh. 38 - Prob. 13RQCh. 38 - Prob. 1PCh. 38 - Prob. 2PCh. 38 - Prob. 3PCh. 38 - Prob. 4P
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