Use a graph to show the impact on the price of Japanese cars sold in the United States if the United States imposes import quotas and other trade restrictions that decrease the supply of Japanese cars. Now, draw another graph to show how the change in the price of Japanese cars affects the price of American-made cars in the United States. Explain the market outcome in each graph and the link between the two graphs.

Use a graph to show the impact on the price of Japanese cars sold in the United States if the United States imposes import quotas and other trade restrictions that decrease the supply of Japanese cars. Now, draw another graph to show how the change in the price of Japanese cars affects the price of American-made cars in the United States. Explain the market outcome in each graph and the link between the two graphs.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter3: The Market And Price System

Section: Chapter Questions

Problem 1E

See similar textbooks

Similar questions

Use the four-step process to analyze the impact of a Deduction in tariffs on imports of iPods on the equilibrium price and quantity of Sony Walkman-type products.
Consider the economy of Russia, which produces oil and cars that are sold both domestically and internationally. Suppose an increase in foreign income causes an increase in the world demand for oil, whereas the supply does not change. The following graph shows the market for oil in Russia. Adjust the following graph to show the effect of a higher demand for oil on the economy of Russia. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther.
Suppose that Carlos and Deborah are the only suppliers of pieces of cake in some hypothetical market. Their annual supply schedules are given by the following table: Carlos's Quantity Supplied Deborah's Quantity Supplied (Pieces) ITT 20 30 35 40 PRICE (Dollars per piece) (Dollars per piece) 5 Price 0 0 1 2 3 4 5 20 On the following graph, plot Carlos's supply of pieces of cake using the green points (triangle symbol). Next, plot Deborah's supply of pieces of cake using the purple points (diamond symbol). Finally, plot the market supply of pieces of cake using the orange points (square symbol). Note: Line segments will automatically connect the points. Remember to plot from left to right. (?) 40 60 80 QUANTITY (Pieces) 100 (Pieces) 120 20 40 55 65 70 Carlos's Supply Deborah's Supply O Market Supply
In recent years consumers trying to save money on their high cable bill have been “cutting the cord” and switching to online content streaming for their television entertainment. Draw a graph to illustrate consumers leaving cable-based television due to the high prices. Explain what is happening on the graph by referring to specific points on it. Draw a corresponding graph to illustrate the consumers who have left cable and switched over to online streaming services. Explain what is happening on the graph by referring to specific points on it. Draw a third graph to illustrate the effects of many new firms entering the online streaming market. Explain what is happening on the graph by referring to specific points on it.
Using both words and graphs, determine what would happen in the market for hamburgers made of beef if: A- The price of hot dogs (made of Turkey) increases B- A disease develops that kills a large proportion of cattle of cows C- A new breed of cattle of cows is developed with much faster growth D- Medical research proves that cattle of cows results in hamburgers with less cholesterol than hamburgers from sheep E- direct subsidy on each head of cattle is given to farmers raising cattle. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Using both words and graphs, determine what would happen in the market for hamburgers made of beef if: A- The price of hot dogs (made of Turkey) increases B- A disease develops that kills a large proportion of cattle of cows C- A new breed of cattle of cows is developed with much faster growth D- Medical research proves that cattle of cows results in hamburgers with less cholesterol than hamburgers from sheep E- direct subsidy on each head of cattle is given to farmers raising cattle.
According to a 2018 article in the Wall Street Journal, proposed tariffs on imported steel could cause the price to consumers of new cars to increase by as much as $300. Use a graph to illustrate the impact of this on the current demand curve for new cars in the United States.
The following table shows the annual demand and supply in the market for orange juice in San Diego. Price (Dollars per gallon of orange juice) 2 12 4 6 8 10 9 (axınl abuex Quantity Demanded (Gallons of orange juice) 500 400 300 200 100 On the following graph, plot the demand for orange juice using the blue point (circle symbol). Next, plot the supply of orange juice using the orange point (square symbol). Finally, use the black point (plus symbol) to indicate the equilibrium price and quantity in the market for orange juice. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. Quantity Supplied (Gallons of orange juice) 50 150 200 300 450 Demand --
The following table shows the annual demand and supply in the market for shoes in Miami. Price (Dollars per pair of shoes) 20 40 60 80 PRICE (Dollars per pair of shoes) 120 100 20 On the following graph, plot the demand for shoes using the blue point (circle symbol). Next, plot the supply of shoes using the orange point (square symbol). Finally, use the black point (plus symbol) to indicate the equilibrium price and quantity in the market for shoes. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. 0 100 0 Quantity Demanded (Pairs of shoes) 1,100 900 800 200 600 500 400 600 800 QUANTITY (Pairs of shoes) Quantity Supplied (Pairs of shoes) 200 400 500 900 1000 1,200 1200 O Demand Supply Equilibrium
Suppose both the demand for olives and the supply of olives decline by equal amounts over some time period. Use graphical analysis to show the effect on equilibrium price and quantity. Instructions: On the graph below, use your mouse to click and drag the supply and demand curves as necessary. Price of olives Quantity of olives S₁ O
The following graph presents the market for motorcycles in 2015. Between 2015 and 2016, the equilibrium quantity of motorcycles remained constant, but the equilibrium price of motorcycles decreased. Given this information, you can conclude that between 2015 and 2016, the supply of motorcycles and the demand for motorcycles Make changes to the graph to illustrate your answer by showing the positions of the supply and demand curves in 2016. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther." lars per motorcycle) Supply Demand Supply ?
In the aftermath of the devastating hurricane Sandy in the Northeast and Jersey Shore, prices of certain goods had risen dramatically. Some people had objected to these price increases, and called for the government to forbid sellers from charging such high prices. This exercise asks you to apply economic principles in explaining why prices tend to rise, and what consequences would result from forbidding sellers from raising prices. We will consider the case of bottled fresh water being available for sale in supermarkets. Draw a graph showing the equilibrium price for the pre-hurricane demand for and supply of bottled water that currently existed in the market place. (label the current equilibrium price as p1 on the price axis, and the quantity as q1 on the quantity axis