Suppose the government of the U.S. wants to protect the domestic sugar industry by restricting sugar imports. Suppose the U.S. produces sugar domestically according to the supply curve QS = P, and suppose the domestic demand for sugar is QD = 8 – P. The world price of sugar is $2. For price of sugar, the units are $/lb., and for quantity of sugar, the units are 1,000,000 Ibs./year.

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Suppose that the United States increases its tariff on steel imports. Steel prices to U.S. consumers would be expected to:   (A) Increase, and the foreign demand for U.S. exports would increase (B) Decrease, and the foreign demand for U.S. exports would increase (C) Increase, and the foreign demand for U.S. exports would decrease (D) Decrease, and the foreign demand for U.S. exports would decrease.

Zenobia is a small country that takes the world price of barley as given. Its domestic supply and demand for barley are given by: D = 60 – 4P S = 4P – 12 7 euro for every bushel of barley Suppose the Zenobian government applies an import quota that limits imports to 12 bushels. a) Determine the quantity demanded, quantity supplied, and new domestic price with the quota. b) Calculate the quota rent. c) Assuming that quota licenses are allocated to domestic producers, what is the net effect of the quota on Zenobia's welfare? d) Assuming that quota rents are earned by foreign exporters, what is the net effect of the quota on Zenobia's welfare?

Consider the case of the following large country (all prices are measured in euros, and quantities are measured in single units): – Domestic demand curve: P = 3600 –3Q – Domestic supply curve: P = 2Q – World free trade price of imports = 140 euros per unit – When the tariff is introduced, domestic prices rise by exactly one third of the amount of the tariff.     Calculate the following. Also show your workouts, draw a diagram depicting the importing country market under free trade and with a tariff.   With a 30 euro specific tariff:   The change in consumers' surplus going from free trade to the tariff, in euros: __________________________________________________________________________________ The change in producers' surplus going from free trade to the tariff, in euros: __________________________________________________________________________________ The amount of tariff revenue, in euros: __________________________________________________________________________________ The change…

Which of the following is likely to occur if a tariff is imposed on the market? (Assume that the market had free trade initially) O Imports will increase and domestic production will decrease. O Imports will decrease and domestic production will increase. O Imports will decrease and domestic production will decrease. O Imports will increase and domestic production will increase,

The cost of producing cars in Canada is $30,000, while the cost of producing cars in Mexico is $22,000, while in the U.S. it costs $18,000. Canada currently imposes a 50% tariff on all automobile imports. a) If Canada enters into a customs union with Mexico, will this lead to trade diversion or trade creation? b) If the tariff rate was originally 100%, would Canada entering into a customs union with Mexico lead to trade diversion or trade creation? c) If the tariff rate was originally 100%, and the cost of producing cars in the U.S. was $12,000, would Canada entering into a customs union with Mexico lead to trade diversion or trade creation?

Quotas may be set on worldwide imports or on imports from a specific country.True or False

A country decides to impose higher tariffs on imported goods to encourage domestic production. This policy change impacts the circular flow of income and expenditure by altering the dynamics of international trade. In this scenario, the imposition of tariffs on imports primarily:A) Acts as a leakage in the circular flowB) Functions as an injection into the circular flowC) Has no significant impact on the circular flowD) Reduces government expenditure in the circular flow   Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.

What would be the effect of ANWR production on the world price of oil given that ɛ = - 0.50, 1 = 0.40, the pre-ANWR daily world production of oil is Q, = 82 million barrels per day, the pre-ANWR world price is p, = $100 per barrel, and daily ANWR production would be 0.8 million barrels per day? For simplicity, assume that the supply and demand curves are linear and that the introduction of ANWR oil would cause a parallel shift in the world supply curve to the right by 0.8 million barrels per day. Determine the long-run linear demand function that is consistent with pre-ANWR world output and price. The long-run demand function is Q = 123 – 0.41p`. Determine the long-run linear supply function that is consistent with pre-ANWR world output and price. The long-run supply function is Q = 49.2 + 0.328p`. Determine the post-ANWR long-run linear supply function. The long-run supply function with ANWR oil production is Q= 50 + 0.328p'. Use the demand curve and the post-ANWR supply function to…