Suppose that, as part of an international trade agreement, the U.S. government reduces the tariff on imported coffee. Will this affect the supply or the demand for coffee? Why?
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Suppose that, as part of an international trade agreement, the U.S. government reduces the tariff on imported coffee. Will this affect the supply or the demand for coffee? Why?
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- I asked this question in an earlier assignment; It was a bonus question about price floors and tariffs. I’m curious if your answers have changed. Would tariffs on imported wine be a price floor?Why is there a price hike in sugar in the Philippines?How did an export ban on onion by India affected the price of local onion in Bangladesh? Can you show this change/ effect on a diagram? If demand for local onion increases during Eid (in future) what changes do you see in the above diagram (from question 2)? Will the supply curve be affected or the demand curve for local onion? If less rainfall limited the supply of Indian onion production, how will it change the equilibrium price in the Indian market? If Indian Government reduces export incentive, how will it affect/change demand or supply of onion in India in the free market? Show with a diagram Onion prices in Bangladesh are unlikely to come down unless prices fall in India with a bumper production. What can we do to reduce the onion price in BD? Is there a role of the government?
- Why do consumers in the United States pay more than double the world price for sugar?With the recent war between Russia and Ukraine, the production and thus exports of wheat have declined (which increased the price of such exports), because Ukraine is the major producer and exporter of the same. As a result, what can we expect in the market for rice, used by many as a staple instead of wheat? a) The equilibrium price will increase, the equilibrium quantity will decrease b) The equilibrium price will increase, the equilibrium quantity will increase c) The equilibrium price will decrease, the equilibrium quantity will increase d) The equilibrium price will decrease, the equilibrium quantity will decreaseWhat will be the quantity demanded by country 1 from the rest of the world at a price of $5?
- Recently, the United States engaged in a trade war with China. It placed tariffs on goods from China. a) What is a tariff? b) How can tariffs affect trade between countries? How does it affect the price of goods? c) How could it affect consumption?Graphically show how each of the following shifts the supply curve. Also identify which factor of supply is being affected in each case. What happens to the supply of Spices if the US government withdraws an embargo on imported Spices from Iran?Suppose that the Bahrain government reduces the tariff on imported coffee, and at the same time, the Health Ministry of Bahrain publishes a reputable study indicating that coffee drinkers have lower rates of colon cancer. What will the combined impact be on the equilibrium price and quantity of coffee? Explain your reasoning and show it graphically. Make sure you think this through carefully!
- The graph to the right shows the supply and demand for Japanese-made automobiles in the United States. Assume that Japanese-made and U.S.-made automobiles are of the same quality and are considered to be perfect substitutes. Suppose that the U.S. government imposes a tariff on Japanese-made automobiles. 1.) Using the line drawing tool, show the effect on the market for Japanese-made automobiles. Properly label your line. 2.) Using the point drawing tool, identify the new equilibrium price and quantity. Label it 'E₂'. Carefully follow the instructions above, and only draw the required objects. As a result of the tariff, the price of Japanese-made cars rises and the quantity falls. In the market for American-made cars, there will be and thus the price of American-made cars will equilibrium quantity will and the Price per Automobile ($) S Japanese-made Automobiles (thousands)Analyze the impact of a decrease in tariffs (taxes) on imported flat screen televisions in the market for flat screen televisions.Much of the demand for U.S. agricultural output has come from other countries. In 1998, the total demand for wheat was Q = 3244 - 283P. Of this, total domestic demand was QD = 1700 - 107P, and domestic supply was QS =1944 + 207P. Suppose the export demand for wheat falls by 40%. a. U.S. farmers are concerned about this drop in export demand. What happens to the free-market price of wheat in the United States? Do farmers have much reason to worry? b. Now suppose the U.S. government wants to buy enough wheat to raise the price to $3.50 per bushel. With the drop in export demand, how much wheat would the government have to buy? How much would this cost the government?