PRICE (Dollars per ton) 1280 1220 1160 1100 1040 980 920 860 800 740 680 0 Domestic Demand Domestic Supply PS Z Pw 25 50 75 100 125 150 175 200 225 250 QUANTITY (Tons of maize) CS Because Jordan participates in international trade in the market for maize, it will import Use the following graph to show the effects of the $120 tariff. Now suppose the Jordanian government decides to impose a tariff of $120 on each imported ton of maize. Under the tarif consumers pay for a ton of maize becomes $ and Jordan will import tons of maize. tons of maize. Use the black line (plus symbol) to indicate the world price plus the tariff. Then, use the green points (triangle symbols) to with the tariff and the purple triangle (diamond symbols) to show the producer surplus with the tariff. Lastly, use the oran MacBook Pro

PRICE (Dollars per ton) 1280 1220 1160 1100 1040 980 920 860 800 740 680 0 Domestic Demand Domestic Supply PS Z Pw 25 50 75 100 125 150 175 200 225 250 QUANTITY (Tons of maize) CS Because Jordan participates in international trade in the market for maize, it will import Use the following graph to show the effects of the $120 tariff. Now suppose the Jordanian government decides to impose a tariff of $120 on each imported ton of maize. Under the tarif consumers pay for a ton of maize becomes $ and Jordan will import tons of maize. tons of maize. Use the black line (plus symbol) to indicate the world price plus the tariff. Then, use the green points (triangle symbols) to with the tariff and the purple triangle (diamond symbols) to show the producer surplus with the tariff. Lastly, use the oran MacBook Pro

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 9PA

See similar textbooks

Similar questions

Economics Consider a small country that imports good X from an international market. Let the initial international price of good X be $100, and the country decides to impose an import tariff of 20% on the product. Use the information in the graph below to answer the following questions. (20 points) Price of Supply 130 e 120 Price after tax a 100 World Price Import Demand 10 20 100 110 Quantity of good X 1. What is the world price after tariff? 2. Calculate the change in consumer surplus after the tariff. 3. Calculate the change in producer surplus after the tariff. 4. Calculate the change in government tariff revenue after the tariff.
2 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?
The following graph shows intra-industry trade in the United States for two types of yogurts: Yoplait (a famous French brand) and Dannon (a famous American brand): 13 12 11. 10 A 9 7 1. -1 0 -11 O AKL. O AGH. Supply of Yoplait 3 O GHLK. O HPL. US Market for Yoplait (Y) Demand for Yoplait Yoplak 10 11 12 13 14 15 -1 12 Price 11 10 A 0 US Market for Dannon (D) Refer to the above graph. At the price of $6, intra-industry trade leads to a consumers surplus for Y equal to: Supply of Dannon Demand for Dannon Dannon 10 11 12 13
Price (dollars per battery) 20 18 16 14 12 10 8 0 A Sus World price + tariff World price Dus 100 300 500 700 900 1,100 1,300 Quantity (thousands of batteries) The above figure shows the U.S. market for replacement cell phone batteries. Suppose the U.S. government imposes the tariff illustrated in the figure. The tariff is equal to and the price U.S. consumers pay compared to the price paid when there was free trade.
Finland 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.
The figure to the right shows the U.S. demand and supply for leather footwear. Suppose the government allows imports of leather footwear into the United States. What will be the domestic quantity supplied? OA. Qo OB. Q₁ OC. Q₂ OD. Q₂-20 CHI Price $54 30 24 0 R S V W X τυ % Q₁ Y Q₂ US Supply World price US Demand Quantity of leather footwear
Figure 7-1 Price $54 30 24 0 R S V W X Y % Q₁ Q₂ US Supply O Q0 O Q1 World price Quantity of leather footwear Figure 7-1 shows the U.S. demand and supply for leather footwear. Q2 US Demand Refer to Figure 7-1. Suppose the government allows imports of leather footwear into the United States. What will be the quantity of imports? OQ2Q0
Ii, GRAPH O SETTINGS Supply Price of Computers ($) Somest Demand Tariff Amount 1,000 Nw Dom Eglum CALCULATIONS 800 World Price Domestic Quantity Supplied 110 Imports Domestic Quantity Demanded 190 Level of Imports 80 190 Tarf Amount $0 110 Quantity of Computers Taniff Revenue $0
Korea’s demand for computers isQK = 2, 000 − PkIts supply isQK = −200 + PkChina’s demand for computers isQC = 1, 000 − Pc Its supply isQC = Pc1. Suppose that Korea imposes a specific tariff of $100 on computerimports. Calculate the price of computers in each country and thequantity of computers supplied and demanded in each country. Alsocalculate the volume of trade.
The graph to the right shows the market for water bottles in Thirsty-country with free trade (S1), with tariffs (S2), and with domestic firms only (S3). Shade in the area to show the amount of the tariff collected. Drund irgok: 15 Tritf6-45-15 f 15x (205) Quanty thousand
27. Suppose IP is the international trade price and this country's government imposes a $3 tariff on imports of this good, what will be the loss to consumers? 28. Suppose IP is the international trade price and this country's government imposes a $3 tariff on imports of this good, what will be the net loss to this econom? 29. Suppose IP is the international trade price and this country's government imposes a $3 tariff on imports of this good, how much revenue will the government collect? 30. Suppose IP is the international trade price and this country's government imposes a 6 unit quota on imports of this good, what will be the net loss to this econom?
Namibia is contemplating on imposing an export subsidy to encourage its businesses to export more. with the use of the diagram, discuss the effect of such an export sudsidy