The graph below shows the market for tires in the United States, a nation that is open to international trade but is assumed to be a price taker unable to affect the world price of tires. Market for Tires 320 Tools 280 New Equilibri Qs+ quota 240 S+ Quota 200 160 120 80 (280, 80) 40 40 80 120 160 200 240 280 320 Quantity (millions of tires) a. Using the graph above, at the world price of $80 per tire, how many tires will the United States import? million tires Now suppose the U.S. government imposes a quota as shown in the graph above. b. Using this same graph, indicate the new market equilibrium with the quota imposed and the domestic quantity supplied (Qs). Price (dollars per tire)
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- USB memory sticks have become popular with Canadian computer users because they offer flexibility for users to move data easily from one computing device to another. Figure 1 below shows the domestic Canadian USB memory stick market. Use this information to answer the questions below. Figure 1: Canadian USB Memory Stick Market Price ($) QD Qs Per Flashdrive Millions of Units 20 6. 18 1 16 2 4 14 3 3 12 10 1 8 6. 7 4 8. 2 10 a) What is the domestic equilibrium price and quantity of USB memory sticks in Canada? Assume the Canadian USB memory stick market is an 'autarky' market (i.e. all USB memory sticks purchased by Canadian consumers are manufactured by Canadian USB memory stick suppliers). What is the total market size (i.e. total revenue or TR)? What is the consumer surplus (CS), producer surplus (PS) and total surplus (TS)? b) The Government of Canada is interested in promoting international trade. The federal government has opened the Canadian market to suppliers of USB memory…PRICE (Dollars per tonne) 1160 Domestic Demand 1110 1060 1010 960 910 860 810 760 710 660 0 20 40 60 80 100 120 140 160 180 QUANTITY (Tonnes of oranges) and is represented by the horizontal black line. satisfy domestic demand as much as possible before any exporting or importing takes place. price of oranges and that there are no transportation or transaction costs associated Domestic Supply A tariff set at this level would raise $ PW 200 If Zambia is open to international trade in oranges without any restrictions, it will import Suppose the Zambian government wants to reduce imports to exactly 40 tonnes of oranges to help domestic producers. A tariff of $ tonnes of oranges. in revenue for the Zambian government. per tonne will achieve this. Q Search this courseQuestion 10 20 19 18 17 16 15 14 13 12 11 10 9 8 3 2 1 2 3 4 56 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Consider the diagram. Quantity is thousands. If the world price is $5, what would be the deadweight loss from a $3 tariff? $7500 $6000 $1050 $9000 A Moving to another question will save this response.
- Blood oranges P. (euros/ton) 1,000 500 700 Q (metric tons) Blood oranges are a tasty fruit with a red-colored flesh. The Italian government subsidizes the production of blood oranges by supporting their price. If the market for blood oranges from Italy is as shown in the graph above, how much does the subsidy cost the government and, ultimately, Italian taxpayers? Select one: O a. 700,000 euros b. 500,000 euros Oc. 1 million euros O d. 200,000 euros Check Previous page Next page acBook ProConsider the market for slug repellant. This good can be produced in the United States or abroad. Assume U.S. consumers wish to buy the least expensive slug repellant possible. Price Quantity demanded $6 13000 $7 12000 $8 11000 $9 10000 $10 9000 $11 8000 Quantity supplied domestically 2000 4000 6000 8000 9000 10000 Quantity supplied by importers if trade is allowed 5000 5000 5000 5000 5000 5000 If international trade is allowed, what is the equilibrium price?price supply domestic price- $35 import price + tarif $20 demand 100 300 500 650 850 quantity Based on the graph above, if there is a tariff of $15 per unit imposed on imports in this market: A. 750 units will be imported and tariff revenue to the government will be $11.250 B. 650 units will be imported and tariff revenue to the government will be $9,75O C. 350 units will be imported and tariff revenue to the government will be $5.250 D. 300 units will be imported and tariff revenue to the government will be $4,500
- Assume a perfectly competitive market and the exporting country is small. Using a demand and supply diagram, show the impact of increasing standards on a low-income exporter of toys. Show the tariffs impact. Is the effect on toy prices the same or different? Why is a standards policy preferred to tariffs?Refer to the information in the followina table and answer questions 15 to 18. Quantity demanded domestically 15000 Price Quantity supplied domestically $ 20 20000 17500 20000 22500 25000 17 14 11 8 17500 15000 12500 10000 15 If the market were closed to the international trade, the revenue earned by the domestic producers will be:... 16 If the market was open to international trade and the world price was $11, total revenue of the international trade will be:...... 17 Assume world price $14 includes a tariff of $3 per product. Net revenue of the foreign suppliers after tariff will be:.. 18 At the world price $11 which includes tariff of $3 per product, quota of 10000 imported items will enable the government to get $30000 as tariff revenue if tariff duty is abolished. Do you agree? Why?Using the attached table, the equilibrium price before the tax is imposed is . The equilibrium price after the tax is imposed is a b Question 19 с d Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. $140, $160 $160, $140 $140, $150 Price (S) 100 $160, $150 120 140 160 180 200 220 Quantity Quantity Quantity Demanded Supplied Supplied w/Tax 600 530 575 540 550 550 525 560 570 500 475 450 580 590 495 505 515 525 535 545 555
- 10 6 8 00 7 6 51 4 3 2 1 Price ($) (30,3) (46.4) (72,4) P W (84,3) 0+ 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95100 Quantity, Basketballs The figure displays supply and demand for basketballs in the United States. The U.S. is considered 'small in international' trade with respect to basketballs and the world price of basketballs is Pw = $3. If the U.S. imposes a tariff of $1, how much tariff revenue does the government collect? To review this concept, see the section Analysis of Import Tariffs. O $104 $26 O $78 O $403 1190 Domestic Demand E 1140 1090 PRICE (Dollars per ton) 1040 990 940 890 840 790 740 690 0 10 20 + I 1 1 R 30 40 50 60 70 QUANTITY (Tons of limes) A tariff set at this level would raise $ F If Zambia is open to international trade in limes without any restrictions, it will import % Domestic Supply 5 T Suppose the Zambian government wants to reduce imports to exactly 40 tons of limes to help domestic producers. A tariff of achieve this. G 1 I 6 P. 80 90 100 W Y in revenue for the Zambian government. H & 7 ? U 8 00 J tons of limes. Grade It Now 9 K O per ton will Save & Continue Continue without eaving O PThis assignment is to test your understanding of Demand & Supply. Each question should be answered in your own words accompanied by a diagram showing what is happening to demand & supply. Please use graph paper for your diagrams. In September of 2006 Hurricane Chantel hit Florida and caused over a billion dollars in damage to homes and businesses, infrastructure, etc. At the same time the province of BC was recovering from a forest fire season that destroyed millions of hectares of forest. Explain the impact these natural disasters had on the demand for, supply of, and price of lumber in North America. Using the information below prepare a graph to clarify your answer starting at equilibrium. The change in quantity of supply or demand is 1,000,000 board feet for each of the aforementioned shocks. What is the new equilibrium?