EBK FOUNDATIONS OF ECONOMICS
8th Edition
ISBN: 8220103632225
Author: PARKIN
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 9, Problem 8SPPA
To determine
The gain and loss from the restrictions on steel import is to be determined.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Sujee
International Trade - End of Chapter Problem
The United States is the fifth largest sugar consumer and the fifth largest sugar producer in the world. The U.S. sugar industry
has enjoyed trade protection since 1789 when Congress enacted the first tariff against foreign-produced sugar.
The accompanying graph depicts the supply and demand for sugar in the United States in 2019. The world price for sugar was
$0.12 per pound.
a. The United States enacts an import tariff of 6 cents per pound. In the accompanying graph, place the line labeled "World price
+ tarill" in the graph to reflect this tariff.
Price (cesta per pound)
52
54
48
24
18
D
0
B
Market for sugar
Domestic supply
19
24
Quantity (billions of pounds)
CS
d. Given the tarill, quantity demanded will be
pounds. U.S. imports will therefore be
PS
e. As a result of the tariff, consumer surplus will
economic surplus will
GR
World Price + tarif
b. Next, using the shapes in the graph, shade the areas that represent consumer surplus…
The united states is a big exporter of animals feeds, corn ,meat, fruits, vegetables and other agriculture commodities.Explain how foreign trade affects the domestic supply of such products.
The box said higher or lower for the 1 question
an
OA. win: lose
OB. lose: win
OC. lose: lose
OD. win: win
The United States exports athletic coaching services and imports coffee.
The price of athletic coaching services in the United States is
without international trade.
As a result of trade in athletic coaching services, U.S. producers of athletic coaching services
and U.S. consumers of athletic coaching services
Click to select your answer.
Show Transcribed Text
The box said higher or lower for the 1 question
5
OA win; lose
OB. lose; win
OC. win: win
OD. lose; lose
C
3
C
The price of coffee in the United States is
trade.
As a result of trade in coffee, the U.S. producers of coffee
with international trade than
with international trade than without international
and U.S. consumers of coffee
T
tri
A
Chapter 9 Solutions
EBK FOUNDATIONS OF ECONOMICS
Ch. 9 - Prob. 1SPPACh. 9 - Prob. 2SPPACh. 9 - Prob. 3SPPACh. 9 - Prob. 4SPPACh. 9 - Prob. 5SPPACh. 9 - Prob. 6SPPACh. 9 - Prob. 7SPPACh. 9 - Prob. 8SPPACh. 9 - Prob. 9SPPACh. 9 - Prob. 10SPPA
Ch. 9 - Prob. 11SPPACh. 9 - Prob. 1IAPACh. 9 - Prob. 2IAPACh. 9 - Prob. 3IAPACh. 9 - Prob. 4IAPACh. 9 - Prob. 5IAPACh. 9 - Prob. 6IAPACh. 9 - Prob. 7IAPACh. 9 - Prob. 8IAPACh. 9 - Prob. 9IAPACh. 9 - Prob. 1MCQCh. 9 - Prob. 2MCQCh. 9 - Prob. 3MCQCh. 9 - Prob. 4MCQCh. 9 - Prob. 5MCQCh. 9 - Prob. 6MCQCh. 9 - Prob. 7MCQ
Knowledge Booster
Similar questions
- х 0 150 $1500 $625 $2800 $865 Price of Calculators $27 12 7 2 300 400 Domestic Supply Domestic Demand World Price Quantity of Calculators The figure above shows the domestic market for calculators in Haiti. What is the change in total surplus in Haiti because of trade?arrow_forwardFinland imports shoes into its country; they are a price taker in this market. Suppose the world price of shoes is $40. If Finland imposes a $10 tariff on shoes, what would be the domestic price of shoes and what will happen to the quantity bought? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. The quantity bought will increase and the price will be $30. a The quantity bought will fall and the price will be $30. The quantity bought will fall and the price will be $50. The quantity bought will increase and the price will be $50.arrow_forwardPrice of Wagons gain by $240 lose by $240 gain by $120 lose by $75 $18.5 8 5 1 0 40 70 90 Domestic Supply World Price Domestic Demand Quantity of Wagons Refer to the figure above. If this country allows free trade in wagons, how much will consumers gain or lose?arrow_forward
- Trying to construct a graph that shows U.S. Demand curve for sugar. U.S. Supply curve for sugar. Show world price and U.S. price (show dollar values). Show quantity supplied by U.S. firms and U.S. sugar consumption on graph (show values). Quantity is in pounds. These values are on the attached files. Figure how many pounds of sugar are imported. This will be a value. Show it on the graph. Shade the area(s) of dead-weight loss on the graph (no value needed). Mark the area which is the revenue for foreign sugar producers—figure the dollar value and note it on the graph. Sugar consumption in the U.S. 2009-2019 Pounds(Billions) 2009 21.82 2010 22.48 2011 22.26 2012 22.92 2013 23.58 2014 23.80 2015 23.80 2016 24.20 2017 24.09 2018 24.20 2019 24.25 Sugar production in the U.S. 2009-2019 Pounds(Billions) 2009 15.87 2010 15.65 2011 16.97 2012 17.85 2013 16.97 2014 17.30 2015 17.98…arrow_forwardQuantity Supplied Domentically Jerice Domestically Quantity Demanded 1,400 $10 2,200 1,600 9. 2,000 1,800 1,800 2,000 7. 1,600 2,200 6. 1,400 2,400 1,200 Refer to the accompanying table for a certain product's market in Econland, the world price of the product were $6 and a tariff of $t per unit were applied to imports of the product, then the tariff would generate government revenues of Mutple Choice $400 S1200 S600 S000arrow_forwardAssume Australia is an importer of sofas and there are no trade restrictions. Australian consumers buy 1 000 000 sofas per year, of which 450 000 are produced domestically and 550 000 are imported.a Suppose that a technological advance among Swedish sofa manufacturers causes the world price of sofas to fall by $200. Draw a graph to show how this change affects the welfare of Australian consumers and Australian producers, and how it affects total surplus in Australia.b After the fall in price, Australian consumers buy 1 150 000 sofas, of which 300 000 are produced domestically and 850 000 are imported. Calculate the change in consumer surplus, producer surplus and total surplus from the price reduction.c If the government responded by putting a $200 tariff on imported sofas, what would this do? Calculate the revenue that would be raised and the deadweight loss. Would it be a good policy from the standpoint of Australian welfare? Who might support the policy?d Suppose that the fall in…arrow_forward
- The figure provided shows the Canadian domestic market for calculators. Price of calculators $450 40 30 20 25 10 S world price with tariff world price Fore 50 100 200 300 400 500 600 700 800 900 Quantity of calculators If the world price is $5 and an import quota of 600 is imposed, the price after the quota, in numerals, isarrow_forwardYou have just been put in charge of trade policy for Malawi. Coffee is a recent crop that is growing well and the Malawian export market is developing. As such,Malawi coffee is aninfant industry.Malawi coffee producers come to you and ask for tariff protection from cheap Tanzanian coffee. What sorts of policies will you enact? Explain.arrow_forwardEconomics A trade expert compares the modern tariffs to the Depression-era Smoot-Hawley tariffs. He says “The economic impact is going to take years to play out." What was the effect of the Smoot- Hawley tariffs on U.S. trade? a) Both imports and exports rose by nearly about the same amount, the trade balance remained about the same, and the total volume of trade increased. b) Both imports and exports fell by nearly about the same amount, the trade balance remained about the same, and the total volume of trade decreased. c) Imports decreased, and the trade balance increased. The total volume of trade was nearly unchanged. d) Imports decreased, and the trade balance was nearly unchanged. The total volume of trade decreased.arrow_forward
- Chapter 9 Trade Policy 8. Removing an import quota on sugar could possibly hurt US welfare iff a) the US price of sugar falls b) the volume of US sugar imports rises c) quota rights were bring given away for free d) quota rights were being auctioned off efficiently e) none of the abovearrow_forward2 Using the graph, assume that the government imposes a $1 tariff on solar panels. Answer the following questions given this information. Price $13 65 8 Domestic Supply $1.00 Tariff World Price Domestic Demand о 30 40 60 84 96 Quantity a. What is the domestic price and quantity demanded of solar panels after the tariff is imposed? b. What is the quantity of solar panels imported before the tariff? c. What is the quantity of solar panels imported after the tariff? d. What would be the amount of consumer surplus before the tariff? e. What would be the amount of consumer surplus after the tariff? f. What would be the amount of producer surplus before the tariff? g. What would be the amount of producer surplus after the tariff? h. What would be the amount of government revenue because of the tariff? i. What would be the total amount of deadweight loss due to the tariff?arrow_forwardDomestic Supply and Demand for Baseball Caps Spain 10 8. 7. 4 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? 10 thousand b. What quantity of baseball caps will be imported? 80 thousand Now suppose a tariff of €1 is levied against each imported baseball cap. c. After the tarif is implemented, what quantily of baseball caps will domestic suppliers supply to domestic consumers? 30 thousand d. After the tariff is implemented, what quantity of baseball caps will be imported? 40 thousand Price (€ per cap) 3.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: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