Suppose the nation of Isoland is an importer of textiles and is looking for a way to raise government revenue. The following graph shows the effect of a tariff on textile imports. Price of Textiles с G 1 B Supply P+T D E F Demand PW I Q "S,1 $2 Quantity of Textiles Having rejected a tariff on textiles (a tax on imports), the president of Isoland is now considering the same-sized tax on textile consumption (including both imported and domestically produced textiles). Under a textile consumption tax, the quantity of textiles consumed in Isoland is and the quantity produced in Isoland is The following table shows the effect of an import tariff on the nation of Isoland. Complete the remaining columns of the following table by indicating the effect of the same-sized tax on textile consumption. Under Tariff Before Tariff or Tax After Consumer Surplus Producer Surplus Government Revenue None Total Surplus A+B+C+D+E+F G A+B Change -(C+D+E+F) Under Consumption Tax After Change C+G +C E +E A+B+C+D+E+F+G A+B+C+E+G (D+F) The raises more revenue for the government, and the has a smaller deadweight loss associated with

Economics Question

Which of the following statements is false? Question 7Answer a. If the United States imposes a tariff on Japanese car imports, the price of cars in the United States is likely to increase. b. If Japan imposes a quota on car exports to the United States, the price of cars in the United States is likely to increase. c. If the United States imposes a quota on Japanese car imports, the price of cars in the United States is likely to increase. d. If Japan imposes a subsidy on car exports to the United States, the price of cars in the United States is likely to increase.

Import demand is given by A   by the difference between the demand for a good and the supply of a good in the world market. B   the import quota C   the difference between the domestic demand for a good and the domestic supply for a good. D   the difference between the domestic supply for good and the domestic demand for a good

Give explanation also please

Brazil is an importer of computer chips. When the Brazilian government imposes an import quota on computer chips, consumer surplus decreases, total surplus increases in the Brazilian computer chip market. consumer surplus increases, total surplus decreases in the Brazilian computer chip market. consumer surplus decreases, total surplus decreases in the Brazilian computer chip market. consumer surplus increases, total surplus increases in the Brazilian computer chip market. O O O

Refer to the graph below of a large country that has imposed a tarifft on this good. The terms-of-trade gain for this country is , and the deadweight loss suffered by this country is Price $36 $30 $26 Home market S D 20 40 80 100 Quantity Price World market 40 80 Imports

How does the tariff affect (i) the consumer surplus, (ii) the producer surplus, and (iii) government's revenue on the market where the import tariff is applied? Briefly explain your result. Assume a country that is small and does not affect the world market implements an import tariff. How does the tariff affect the overall welfare of the country?

Economics Question

The U.S. is an importer of ethanol, and let’s assume they are a price-taker in the world market.  Suppose that a technological advance in ethanol production in Brazil, the world’s largest exporter, drives down the world price of ethanol by $5.     Draw a graph and explain how this change in world price affects consumer surplus, producer surplus, and total surplus in the U.S. market.                                              Now suppose the U.S. government institutes an import tariff of $5 in response to the fall in the world price.  On your graph label the revenue raised by the tariff and the deadweight loss created (if it exists).  Who is likely to support this policy?                     Suppose that the fall in price is attributable not to a technological advance but to a subsidy from the Brazilian government to Brazilian ethanol producers.  How would this affect your analysis?