EBK ESSENTIALS OF ECONOMICS
8th Edition
ISBN: 8220103599832
Author: Mankiw
Publisher: Cengage Learning US
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Chapter 9, Problem 7PA
Sub part (a):
To determine
Importing and the effects of importing to the country.
Sub part (b):
To determine
Importing and the effects of importing to the country.
Sub part (c):
To determine
Importing and the effects of importing to the country.
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Students have asked these similar questions
Exporting countries
Which of the following will be true, everything else remaining constant, for a country that exports some good?
a)The greater the price elasticity of supply for the good in the exporting country, the greater the volume of exports.
b) The more that consumers in the exporting country respond to a change in price, the greater will be the gains from trade.
b) The smaller the price elasticity of demand and supply in the exporting country, the greater the gains from trade.
c) Some domestic suppliers will lose surplus while others will gain surplus.
Choose the statements that match the question and briefly explain your reasoning to understand the question better. Thankyou.
The figure below shows the U.S. market for imported wine. For simplicity, we
consider export supply curves to be flat. Chilean wine is available for $480 per
barrel and French wine is available for $420 per barrel.
Price per barrel
$500
$480
$420
10
a.
$480
b. $560
C.
$500
d. $420
15
a
Chilean price
French price
US demand for imported wine
Quantity
(millions of barrels per year)
Suppose the United States has a tariff of $80 per barrel on imported wine.
Then, the United States joins a free-trade area with Chile. At what price per
barrel will the imported wines be purchased by the U.S. consumers?
Suppose the United States producers of rice convince the government to place a quota on (or to restrict entirely) the import.
a. What is the effect on U.S. producers of rice?
b. What is the effect on U.S. consumers of rice?
c. What is the effect on the foreign producers of rice?
Chapter 9 Solutions
EBK ESSENTIALS OF ECONOMICS
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- 10 10 20 30 40 50 60 70 80 90 100 Baseball caps (thousands per month) Suppose that the world price of baseball caps is €1 and there are no import restrictions on this product. Assume that Spanish consumers are indifferent between domestic and imported baseball caps. Instructions: Enter your answers as whole numbers. a. What quantity of baseball caps will domestic suppliers supply to domestic consumers? thousand b. What quantity of baseball caps will be imported? thousand Now suppose a tariff of €1 is levied against each imported baseball cap. C. After the tariff is implemented, what quantity of baseball caps will domestic suppliers supply to domestic consumers? thousand d. After the tariff is implemented, what quantity of baseball caps will be imported? thousand Price (€ per cap)arrow_forwardWhat would happen if the European Union (E.U.) put a quota on American jeans and only allowed their countries to import 5,000 pairs of jeans? A. American jeans would become very expensive and desirable in the EU. B. French jeans would be more popular than any jeans and America would stop importing jeans to Europe. C. American jeans would be less desirable in the EU and there would be no demand. D. Nothing, because European countries dislike American products.arrow_forwardEconomics Consider a small country that imports good X from an international market. Let the initial international price of good X be $100, and the country decides to impose an import tariff of 20% on the product. Use the information in the graph below to answer the following questions. (20 points) Price of Supply 130 e 120 Price after tax a 100 World Price Import Demand 10 20 100 110 Quantity of good X 1. What is the world price after tariff? 2. Calculate the change in consumer surplus after the tariff. 3. Calculate the change in producer surplus after the tariff. 4. Calculate the change in government tariff revenue after the tariff.arrow_forward
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