Export subsidies, such as for aircraft producers, can in theory increase domestic welfare when firms have pricing power or returns to scales are present. True False
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Export subsidies, such as for aircraft producers, can in theory increase domestic welfare when firms have pricing power or returns to scales are present.
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- Import quotas and import tariffs have qualitatively similar effects on equilibrium outcomes in competitive markets. True FalseS S p' p* D Y* X' X* →数量 M The supply function and demand function of a certain agricultural product are as follows: S=2p- 40, D=-2p+120. p is the unit price. Let's assume that the home country is a small country. The international price of the product is P*=25. The government then decides to impose restrictions on the import quantity of this product and the limited amount is ='-' (see the graph). In an open economy situation, when M=40, please answer questions 15-18.15. Please calculate the consumer surplus of this country. 16. Please calculate the producer surplus of this country. 17. Please calculate the total surplus of this country. 18. Please calculate the deadweight loss of this country.effect of fiscal and montary policy on price stability in zimbabwe
- Although there is demand in the local market, much of the demand for Bangladeshi Jute output has come from other countries. We are told that total demand is Q = 3385 - 270P: where, domestic demand is Qdd = 1442 - 144 P; export demand is Qe = 1943 - 126 P supply is Q, = 1601 + 195 P. (Note: total demand, Q = Qd + Qe) (a) What is the equilibrium market price of jute? Please give your answer in 2 decimal places. (b) Suppose, due to the recent pandemic, the export demand for jute falls by 57 percent. What happens to the price of jute in Bangladesh? Please give your answer in 2 decimal places. (c) Now suppose the BD government wants to buy enough jute to raise the price to $5.5 per unit. With this drop in export demand, how much jute would the government have to buy? Please give your answer in 2 decimal places. (d) How much would this cost the government? Please give your answer in 2 decimal places.When prices for durable goods increase, firms can rapidly increase production to match demand. True or falseAlthough there is demand in the local market, much of the demand for Bangladeshi Jute output has come from other countries. We are told that total demand is Q = 3290 - 301P; where, domestic demand is Qdd = 1438 - 135 P; export demand is Qe = 1852 - 166 P supply is Qs = 1617 + 187 P. (Note: total demand, Q = Qdd + Qe) (a) What is the equilibrium market price of jute? (b) Suppose, due to the recent pandemic, the export demand for jute falls by 60 percent. What happens to the price of jute in Bangladesh? (c) Now suppose the BD government wants to buy enough jute to raise the price to $5.7 per unit. With this drop in export demand, how much jute would the government have to buy? (d) How much would this cost the government?
- Country C imports 80,000 metric tons of steel from Country U and produces domestically 80,000 metric tons per year. The world price of steel is $500 per metric ton. Assuming linear schedules, research analysts estimated the price elasticity of domestic supply to be 0.50 and the price elasticity of domestic demand to be -0.25 in the current market equilibrium. Q: Summarise and analyse the quantity of steel produced, consumed and imported in Country C. Analyse and discuss the welfare gain from trade in Country C. Show your answers of the steel market with a proper diagram. Producer sunplus before impont duty P.s, = P.S, +x (500 - E 500)) x 80,000 -x soox 40,000 %3D 40,000,000 - 10,000,000 %3D 30.000,000 Why is there a need to minus ½ x 500 x 40,000 ?Country C imports 80,000 metric tons of steel from Country U and produces domestically 80,000 metric tons per year. The world price of steel is $500 per metric ton. Assuming linear schedules, research analysts estimated the price elasticity of domestic supply to be 0.50 and the price elasticity of domestic demand to be -0.25 in the current market equilibrium. Q: Summarise and analyse the quantity of steel produced, consumed and imported in Country C. Analyse and discuss the welfare gain from trade in Country C. Show your answers of the steel market with a proper diagram.Assume aggregate demand for US wheat equals domestic demand plus export demand. Those demand functions are a function of wheat price in dollars/bushel (P) and are listed below: QDOMESTIC = 1200-50P QEXPORT = 780-60P Aggregate demand for US wheat will equal 1980-110P when OP >13 OP < 20 P13 at any price
- Let us consider the case of Good X in Malaysia. The demand and supply functions for Good X in Malaysia are Demand function: QD=361−2P Supply function: QS=23+P Find out the number of imports at Pw=70 (Please give your answers in two decimal places. ) If the import quota was 80 units what will be the new price in the Malaysian market? (Please give your answers in two decimal places.) How many Good X will be produced domestically after the quota has been implemented? (Please give your answers in two decimal places.) How many Good X will be consumed by domestic consumers after the quota has been implemented? (Please give your answers in two decimal places.) What will be the import after implementing an import quota of 80 units (Please give your answers in two decimal places.) What is the percentage change in imports after the imposition of the import quota? (Please give your answers in two decimal places, Multiply by 100 to convert into a percentage (if you get 0.40 then submit 40 in the…In the world market, a pair of shoes from China is sold for $40 and that from Mexico is $50. U.S. made shoes are $70 a pair. Initially U.S. does not belong to any free trade agreement and imposes an ad valorem tariff of 30%. Later, the U.S. joins a free trade agreement with Mexico and remove all trade barriers including tariffs. The import demand function for the U.S. is Q = 280 – 4P. (Hint: Draw the import demand curve of the world market as shown in the examples on the textbook and lecture slides.) 13. How much will the U.S. government tariff revenue change (as a result of this free trade agreement? а. Increase by $144 O b. Decrease by $720 C. Decrease by $800 O d. Decrease by $864Reciprocal demand depends upon: Select one: a) The price of imports b) A change in economic growth c) The elasticity of demand for another country's production d) The price of exports e) The elasticity of demand for the country's own production