Consider the figure to the right, which shows the domestic market for a good. Suppose that a tariff is added in that market. Using the line drawing tool, show the effect of this on the domestic market Label your line either D,' or 'S, Carefully follow the instructions above and only draw the required object When a tariff is added, it benefits domestic because it product due to the price of a close producers consumers foreign firms demand for the domestic Price (1) $20 $16 $16 $14 $12 $10 16 16 $4 $2 12 Quantity S D₂ 14 16 G

9

Assume that the demand and supply curves with free trade are P-8,500- 15Q for demand and 5,000+20Q, for supply. 1. Find the equilibrium price and quantity with the free trade supply and demand curves. 2. The domestic supply curve is: P = 6,500 + 10Q. Calculate the domestic supply quantity at the free-trade price. 3. Assume that a quota of 10 units is imposed on the import of the product. What is the supply deficiency of the product with the import quota at the free- trade price? 4. What price is necessary for domestic producers to make up for the supply deficiency created by the import quota?

Which of the following will cause an increase in the equilibrium volume of trade in the market for Uber ridesharing in San Diego, holding all other factors fixed, ceteris paribus?  (check all that apply) Lyft increases the price it charges for ridesharing. There is an influx of tourists. Due to the COVID recession, household incomes in the area have gone down. Uber rides are a normal good. A new law that allows rideshare drivers to unionize and charge higher wages is passed.

The European Union has a "variable levy" on imports of butter. This means that when the world price of butter goes up. O The EU must have increased its tariff on butter. O The EU reduces the size of the tariff that it levies on butter. O Consumers of butter in the EU benefit. O Cows in the EU get angry.

do fast.

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

The demand and supply for houses (in millions of houses per year) is shown below. If the worldwide price of houses is $350,000, the international housing market would: Quantity Demanded Quantity Supplied Price per Home 350,000 340,000 330,000 320,000 U.S. Residents 10 20 40 60 Rest of World 15 25 45 65 Experience a shortage Experience a surplus Be at equilibrium Worldwide Market Price per Home 350,000 340,000 330.000 320,000 U.S. Residents 30 25 20 15 Rest of Worldwide World Market 40 35 30 25

. The United States currently imports all of its coffee. The annual demand for coffee by U.S. consumers is given by the demand curve Qd = 150 − 10P, where Qd is quantity (in millions of pounds) and P is the market price per pound of coffee. Suppose the domestic supply is Qs = 10P −50. The U.S. coffee market is competitive. Suppose that the world price of coffee is $6. Congress is considering a tariff on coffee imports of $2 per pound. (a) Find the producer and consumer surplus if there was no trade. (b) Calculate the consumer and producer surplus after we engage in free trade. (c) If the tariff is imposed calculate the changes to consumer and producer surplus. (d) Other than lower prices, provide two benefits that can occur as a result of free trade.

Sujee International Trade - End of Chapter Problem The United States is the fifth largest sugar consumer and the fifth largest sugar producer in the world. The U.S. sugar industry has enjoyed trade protection since 1789 when Congress enacted the first tariff against foreign-produced sugar. The accompanying graph depicts the supply and demand for sugar in the United States in 2019. The world price for sugar was $0.12 per pound. a. The United States enacts an import tariff of 6 cents per pound. In the accompanying graph, place the line labeled "World price + tarill" in the graph to reflect this tariff. Price (cesta per pound) 52 54 48 24 18 D 0 B Market for sugar Domestic supply 19 24 Quantity (billions of pounds) CS d. Given the tarill, quantity demanded will be pounds. U.S. imports will therefore be PS e. As a result of the tariff, consumer surplus will economic surplus will GR World Price + tarif b. Next, using the shapes in the graph, shade the areas that represent consumer surplus…