Foundations of Economics, Student Value Edition Plus MyLab Economics with eText -- Access Card Package (8th Edition)
8th Edition
ISBN: 9780134641843
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 9, Problem 8SPPA
To determine
The gain and loss from the restrictions on steel import is to be determined.
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Students have asked these similar questions
If Alabama imports 10 bushels of peaches and exports 40 bushels of tomatoes, trade allows Alabama to gain _____ bushels of tomatoes compared with autarky.
I know the answer is 10 I just dont understand why
Why are many goods sold in the United States produced overseas, often in several counties?
a. There are no tariffs on imports to the United States.
b. It results in much lower prices for consumers.
c. Overseas production is better for the environment.
d. It reduces the U.S. trade deficit.
1. Draw the US sneaker market in autarky. Add imports (at cheaper world prices).
Add a 48% tariff on sneakers (so that the world price even with the tariff is still below the US autarky price).
Mark the Consumer Surplus and government revenue (after tariff).
Use your diagram to show why New Balance likes the tariff.
Bonus: Use diagram to show why Nike does not like tariff
Chapter 9 Solutions
Foundations of Economics, Student Value Edition Plus MyLab Economics with eText -- Access Card Package (8th Edition)
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
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- This is homework question, not for exam. Pls help me with this problem, I will upvote -) As part of the recent trade war, the US imposed additional tariffs on Chinese imports. With the aid of relevant diagrams and examples, discuss the possible impact that the imposition of tariffs and quotas could have on the US economy.arrow_forwardThe nation of Theopolis recenty put a tariff on the importation of washing machines. Which of the following statements is true based on this information? (a) This tariff harms consumers in Theopolis who buy washing machines (b) This tariff benefts the producers of washing machines in Theopolis (c) This tarif hurts the producers of washing machines in other countries that export to Theopolis (d) The tariff will increase overall weltare in Theopolis Explain all the false answers alsoarrow_forwardThe year is 2005. For many years the US has restricted textile imports from China using quotas. Now under WTO the US is having to eliminate the quotas and allow china to export textiles to the US free of quotas. Use the principles of demand and supply to analyze the effect of this action on: the US textile industry, the US textile consumers, the textile industry of Vietnam (another textile producing country) that has been exporting textile to the US without quotas. Remember to tell us: who gains, and who loses in each case.arrow_forward
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