1. Suppose that the world price for a good is 50, and the domestic demand and supply curves are given by the following equations: QD=350-0.2PD QS = 10 + 6PS a) How much is consumed? How much is produced domestically? What are the values of producer and consumer surplus? b) If a 5% import tariff is imposed, by how much do consumption and domestic production change? What is the change in consumer and producer surplus? How much revenue does the government earn from the tariff? c) What is the deadweight loss of the tariff? Show your results through a graphical representation.

2. In contrast to strawberries, Canada is a major exporter of wheat. Canada's demand (QPCDN) and supply (QScdn) of wheat is given respectively by QPCDN = 420 – 30 PCDN Where P is the price per bushel of wheat. and QSCDN = 150 + 15 PCDN - a) Derive the excess supply curve of wheat for Canada. b) What will be the price at which Canada does not export wheat? c) China is the major importer of Canadian wheat. Its demand (QPH) and supply (Q°H) for wheat is given respectively by QSH = 170 + 5 PH Derive the excess demand curve for wheat in China. ( QPH = 500 – 10 PH and %3D - d) What would wheat price be in China in the absence of trade? e) If Canada and China are allowed to trade with one another, what will be the price and the volume of trade? ( f) The trade war has heated up and China imposes a tariff of $2.40 per bushel. Determine the effect of the tariff on: (1) the price of wheat in each country, (2) the quantity of wheat produced and consumed in each country, and (3) the volume of…

4. Assume that supply for replacement mobile phone batteries in the Australian domestic market is given by the inverse-supply expression P = 9+0.000010s, while inverse demand is P = 19 -0.00001QD. The world price for batteries is $10. (a) Find the equilibrium price and quantity in the market for replacement mo- bile phone batteries if Australia does not engage in any international trade. Compute the consumer surplus, the producer surplus, and the total surplus in the market. (b) Now assume that Australia trades on the world market for batteries, exporting or importing batteries depending on the relation between the world and domestic prices. Find the price at which batteries will be sold in Australia, the quantity purchased, the quantity produced, and the quantity of imports or exports. Compute the consumer surplus, the producer surplus, and the total surplus in the market, as well as the gains from trade relative to part (a). (c) The Australian government imposes a $2 tariff on the…

1. Given below are two groups' (consumers, c, and a special interest group, i) true demands concerning a tariff on snack foods. Demand against (consumers): wtp($) = 80 + 2t Demand for (special interest): wtp($) = 50 - t Where t is the tariff rate. a. Graph the demand curves and explain how much tariff there will be if there were no free riding and all preferences were fully revealed. b. Now assume that "free riding" plagues the consumer group so that their revealed willingness to pay is given by: wtp($) = 30 + t. What are some causes of the "free riding"? Why is this not likely to happen to the producer group? c. Now what will be the equilibrium tariff rate? Graph this scenario in the same graph. d. Relate the outcome to a partial equilibrium tariff graph.

3. A local economy's market demand for drones is given by Q® = 24 - 4P while supply is given by Q5 = 8P. Assume that domestic and world economic conditions were such thạt the local economy started exporting drones. What is the effect of drone exports on local economy's produćer surplus, consumer surplus and total surplus? Suppose instead that domestic and world economic conditions change such that it makes more sense for the local economy to start importing drones. What is the effect of drone imports on the local coconomy's producer surplus, consumer surplus and total surplus?

If the United States is currently importing 14 million barrels per day at a world price of $4.00 per unit (the entire amount consumed), what is the effect on imports of a tax equal to $4.00 per unit? 1.) Using the line drawing tool, help determine the quantity of U.S. crude oil imports after the $4.00 per-unit tax by drawing a horizontal line at the price paid by U.S. consumers. Label this line + Tax'. 2.) Using the point drawing tool, determine quantity demanded at the price paid by U.S. consumers after the imposition of the import tax. Label this line 'Pop'. 3.) Using the point drawing tool, determine quantity supplied at the price paid by U.S. consumers after the imposition of the import tax. Label this line "Pas". Carefully follow the instructions above and only draw the required objects. The amount of imports after the $4.00 per-unit tax is million barrels per day. Before the tax, domestic producers supplied 0 barrels of crude oil. They now supply million barrels Price per barrel…

1) Assume that the domestic supply and demand for a good are given by the following equations. Q = 500 – 20 P   Q = 80 + 10 P   a) If the world price is $10 what is the free trade level of imports? Calculate the net welfare effects of a quota of 60 units. (Quota rent goes to foreign suppliers ( VERS) . Use also graph to show the effects of this quota. b) If %30 tariff imposed on the world price(10$) , what will be net welfare effects? Compare this welfare effect  with the one in (a) and comment. Use a  new graph to show the effects.

Explain how a subsidy on agricultural goods like sugar adversely affects the income of foreign producers of imported sugar.

Suppose that Estonia, which is a"small economy, and it can import plastic chairs at a price of 20 per unit The domestic supply curve of plastic chairs is the following: S=40+10P And the demand curve in Estonia for plastic chairs is:   D=800-5P In addition, each unit of plastic chair production yields a marginal social benefit of 10.   a) Calculate the total effect on welfare of a tariff of 15 per unit levied on imports.     Only typed answer

2. In contrast to brussels sprouts, Canada is a major exporter of wheat. Canada's demand (QPCDN) and supply (QSCDN) of wheat is given respectively by QCDN=600-40 PCDN and QCDN180 + 20 PCDN where P is the price per bushel of wheat. a) Derive the excess supply curve of wheat for Canada. b) What will be the price at which Canada does not export wheat? c) China is the major importer of Canadian wheat. Its demand (Q) and supply (QSH) for wheat is given respectively by Q°r = 500 – 10 PH and Q n = 170 + 5 Pa Derive the excess demand curve for wheat in China. d) What would wheat price be in China in the absence of trade? e) If Canada and China are allowed to trade with one another, what will be the price and the volume of trade? to f) The trade war has heated up and China imposes a tariff of $5.00 per bushel. Determine the effect of the tariff on: (1) the price of wheat in each country, (2) the quantity of wheat produced and consumed in each country, and (3) the volume of trade g) Properly…