Study Guide for Microeconomics
9th Edition
ISBN: 9780134741123
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 9, Problem 12E
To determine
Identify the domestic price after imposing tariff and the effects on domestic producers, domestic consumers, and government revenue from the tariff.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
The domestic supply and demand curves for hula beans are as follows: P = 50 + Q (supply) and P = 200 – Q (demand) where P is the price in cents per pound and Q is the quantity in millions of pounds. Ireland is a small producer in this market where the current price is 60 cents per pound. The Irish Government is considering a tariff of 40 cents per pound.
The quantity of hula beans imported into Ireland after the tariff is A. 100B. 50C. 130D. 90
The domestic supply and demand curves for hula beans are as follows: P = 20 + Q (supply) and P = 250 – Q (demand) where P is the price in cents per pound and Q is the quantity in millions of pounds. Ireland is a small producer in this market where the current price is 50 cents per pound. The Irish Government is considering a tariff of 50 cents per pound.
The increase in producer surplus after the tariff has been imposed is equal to
A. 2750
B. 4000
C. 2500
D. 1500
In a particular market, demand and supply curves are defined by the following equations
QD = 300 – 20P,QS = -540 + 40P,
where P is the price per unit in pounds and QD and QS are the quantity demanded and quantity supplied, respectively.
A) What is the equilibrium price and quantity?
B) If a maximum price is fixed at £12, what quantity will be traded?
Chapter 9 Solutions
Study Guide for Microeconomics
Knowledge Booster
Similar questions
- The domestic demand and supply for sugar are, respectively, Qd = 60,000 − 400P and QSD = 5,000 + 200P. The foreign supply is QSF = 40,000 + 200P. What is the total supply of sugar in the domestic market? Q = 45,000 + 400P. Q = 5,000 + 200P. Q = 35,000 + 200P. Q = 55,000 + 400P.arrow_forwardThe demand for petroleum is given by QD=85 − 0.4P where Q D is the quantity demanded in thousands of barrels per day and P is the price per barrel in dollars. The supply of petroleum is given by QS=55+0.6P. Calculate the equilibrium price and quantity in this market. 2. In the context of the problem in part (a), calculate the demand and supply for petroleum if the market price is $15 per barrel. What problem exists in the economy?arrow_forwardEquilibrium Price: Cell Phones Worldwide quarterly sales of a brand of cell phones were approximately q = −p + 146 million phones when the wholesale price was $p. (a) If the cellphone company was prepared to supply q = 9p − 394 million phones per quarter at a wholesale price of $p, what would have been the equilibrium price?arrow_forward
- In a particular market, demand and supply curves are defined by the following equations: P=50 – 0.5QD QS= -20 + 2P where, P is the price in pounds, QS is the quantity supplied and QD is the quantity demanded. What is the equilibrium price and quantityarrow_forwardThe market demand for milk in country x is 18 billion gallons per month,but the supply is 10 billion gallons per month. What must happen in order to achieve market equilibriumarrow_forwardWhich of the following statements is (are) correct?(x) If the supply curve is upward sloping and a shortage exists in a market then the quantity sold will increase as the price moves to the equilibrium price. (y) If the supply curve is upward sloping, the demand curve is downward sloping and a surplus exists in a market then the quantity sold will increase as the price moves to the equilibrium price. (z) Although suppliers are willing to sell more than buyers are willing to purchase at a price above equilibrium, more will be sold only if the price decreases.A. (x), (y) and (z) B. (x) and (y) only C. (x) and (z) only D. (y) and (z) onlyE. (x) onlyarrow_forward
- The wheat market is perfectly competitive and the market supply and demand curves are given by the following equations: QD = 20,000,000 - 4,000,000PQS = 7,000,000 + 2,500,000P,where QD and QS are quantity demanded and quantity supplied measured in kilogram (kg), and P = price per kg. question: a) Assume that the government has imposed a price floor at $2.25 per kg and agrees to buy any resulting excess supply.How many quantity (kg) of wheat will the government be forced to buy?Determine consumer surplus with the price floor.arrow_forwardAssuming a supply function of Qs = 100+100p and a demand function of Qd = 700-50p and an equilibrium price of $4 with an equilibrium quantity of 500million gallons please answer the followingarrow_forwardIndicate which of these are a reason that market inefficiencies persist? Check all that apply. Inefficiencies are undiscovered Inefficiencies are undiscovered New technology New technology Lowering of transaction costs Lowering of transaction costs Inefficiencies seem rational Inefficiencies seem rational Influx of foreign investors Influx of foreign investors Demographic factors Demographic factors Inefficiencies seem irrationalarrow_forward
- The demand equation for the Drake GPS Navigator is x + 4p − 800 = 0, where x is the quantity demanded per week and p is the wholesale unit price in dollars. The supply equation x − 21p + 1000 = 0, where x is the quantity the supplier will make available in the market each week when the wholesale price is p dollars each. Find the equilibrium quantity and the equilibrium price for the GPS Navigators.arrow_forwardThe demand equation for the BWS Bluetooth wireless loudspeaker is p = −0.07x + 250 where x is the quantity demanded per month and p is the unit price in dollars. The corresponding supply equation is given by p = 0.035x + 40 where x is the quantity demanded per month and p is the unit price in dollars. Find the equilibrium quantity and the equilibrium price for the BWS Bluetooth wireless loudspeakers. equilibrium quantity units equilibrium price $arrow_forwardWhat effect will each of the following have on the supply of auto tires? A technological advance in the methods of producing tires. A decline in the number of firms in the tire industry. An increase in the prices of rubber used in the production of tires. The expectation that the equilibrium price of auto tires will be lower in the future than currently. A decline in the price of the large tires used for semi trucks and earth-hauling rigs (with no change in the price of auto tires). The levying of a per-unit tax on each auto tire sold. The granting of a 50-cent-per-unit subsidy for each auto tire produced.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningMacroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning