Principles of Macroeconomics 2e
2nd Edition
ISBN: 9781947172388
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 3, Problem 12RQ
What determines the level of
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CENGAGE MINDTAP
Aplia Homework: International Trade
300
0 50 100 150 200 250 300 350 400 450 500
QUANTITY (Thousands of tons of tangerines)
tons of
When Guatemala allows free trade of tangerines, the price of a ton of tangerines in Guatemala will be $500. At this price, 300,000
tangerines will be demanded in Guatemala, and 200,000 tons will be supplied by domestic suppliers. Therefore, Guatemala will import
100,000
tons of tangerines.
Using the information from the previous tasks, complete the following table to analyze the welfare effect of allowing free trade.
Consumer Surplus
Producer Surplus
Without Free Trade
(Millions of dollars)
With Free Trade
(Millions of dollars)
When Guatemala allows free trade, the…
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G Welfare effects of a tariff in a
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CENGAGE MINDTAP
Aplia Homework: International Trade
i
2. Welfare effects of free trade in an importing country
Consider the Guatemalan market for tangerines.
The following graph shows the domestic demand and domestic supply curves for tangerines in Guatemala. Suppose Guatemala's government currently
does not allow the international trade in tangerines.
Use the black point (plus symbol) to indicate the equilibrium price of a ton of tangerines and the equilibrium quantity of tangerines in Guatemala in
the absence of international trade. Then, use the green point (triangle symbol) to shade the area representing consumer surplus in equilibrium.
Finally, use the purple point (diamond…
Chapter 3 Solutions
Principles of Macroeconomics 2e
Ch. 3 - Review Figure 3.4. Suppose the price of gasoline...Ch. 3 - Why do economists use the ceteris paribus...Ch. 3 - In an analysis of the market for paint, an...Ch. 3 - Many changes are affecting the market for oil....Ch. 3 - Lets think about the market for air travel. From...Ch. 3 - A tariff is a tax on imported goods. Suppose the...Ch. 3 - What is the effect of a price ceiling on the...Ch. 3 - Does a price ceiling change the equilibrium price?Ch. 3 - What would be the impact of imposing a price flour...Ch. 3 - Does a price ceiling increase the decrease the...
Ch. 3 - If a price floor benefits producers, why does a...Ch. 3 - What determines the level of prices in a market?Ch. 3 - What does a downward-sloping demand curve mean...Ch. 3 - Will demand curves have the same exact shape in...Ch. 3 - Will supply curves have the same shape in all...Ch. 3 - What is the relationship between quantity Demanded...Ch. 3 - How can you locate the equilibrium point on a...Ch. 3 - If the price is above line equilibrium level,...Ch. 3 - When the price is above the equilibrium, explain...Ch. 3 - What is the difference between the demand and the...Ch. 3 - What is the difference between the supply and the...Ch. 3 - When analyzing a market, how do economists deal...Ch. 3 - Name some factors that can cause a shift in line...Ch. 3 - Name some farm that can cause a shift in the...Ch. 3 - How does one analyze a market where both demand...Ch. 3 - What causes a movement along the demand curve?...Ch. 3 - Does a price ceiling attempt to make a price...Ch. 3 - How does a price ceiling set below the equilibrium...Ch. 3 - Does a price floor attempt to make a price higher...Ch. 3 - How does a price floor 521 above the equilibrium...Ch. 3 - What is consumer surplus? How is it illustrated on...Ch. 3 - What is producer surplus? How is it illustrated on...Ch. 3 - What is total surplus? How is it illustrated on a...Ch. 3 - What is the relationship between total surplus and...Ch. 3 - What is deadweight loss?Ch. 3 - Review Figure 3.4. Suppose the government decided...Ch. 3 - Explain why the following statement is false: In...Ch. 3 - Explain why the following statement is false: In...Ch. 3 - Consider the demand for hamburgers. If the price...Ch. 3 - How do you suppose the demographics of an aging...Ch. 3 - We know that a change in the price of a product...Ch. 3 - Suppose there is a soda tax to curb obesity. What...Ch. 3 - Use the four-step process to analyze the impact of...Ch. 3 - Use the four-step process to analyze the impact of...Ch. 3 - Suppose both of these events took place at the...Ch. 3 - Must government policy decisions have winners and...Ch. 3 - Agricultural price supports result in governments...Ch. 3 - Can you propose a policy that meld induce the...Ch. 3 - What term would an economist use to describe what...Ch. 3 - Explain why voluntary Martians improve social...Ch. 3 - Why would a free market mar operate at a quantity...Ch. 3 - Review Figure 3.4 again. Suppose the price of...Ch. 3 - Table 3.8 shows information on the demand and...Ch. 3 - The computer market in recent years has seen many...Ch. 3 - Table 3.9 illustrates the markets demand and...Ch. 3 - Table 3.10 shows the supply and demand for movie...Ch. 3 - A low-income county decides to set a price ceiling...
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- ← MyHarper | Students Content → с ChatGPT - Microeconomics Mind Tap - Cengage Learning x b Answered: - Q Search this ng.cengage.com/static/nb/ui/evo/index.html?deploymentId=5832655719808280021166203&elSBN 9781337914413&id=2125010357&snapshotId=4041364& ☆ វា Q Search this course >>> CENGAGE MINDTAP Aplia Homework: International Trade rmany, use the purple point (aramona sympory to shave the area representing producer surplus in equimonium. Note: Select and drag a fill area point from the palette to the graph. To fill in regions on the graph, merely drop the fill area point on the desired region. 800 Domestic Demand Domestic Supply 750 700 650 PRICE (Dollars per ton) 600 550 500 450 400 350 300 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Thousands of tons of tangerines) + No Trade Equilibrium Δ Consumer Surplus ? Producer Surplus Σ m Q ? C × A-Z Dec 13 8:00 bongoarrow_forwardDon't use ai to answer I will report you answerarrow_forwardPlease show a separate supply and demand diagram for a,b,c,d clearly label FRA, WTP, Consumer Surplus, Producer Surplus and Social Welfare for the intial WQ level as well as P* and Q* for each: (a) In the diagram below, show and explain the initial level of forest recreation area (FRA) when there is no price charged for using it (i.e., it is free). Show/explain the total willingness to pay (WTP), consumer surplus (CS), producer surplus (PS), and social welfare (SW) for the initial WQ level. (b) In a new diagram, show what happens to WTP, CS, PS, and SW as FRA deteriorates (e.g., the supply of FRA becomes smaller from development). Then in another diagram, show/explain what happens to WTP, CS, PS, and SW as population grows. (c) Suppose a perfectly competitive market was created for FRA. In a new diagram, show/explain what happens to the FRA level, Price, WTP, CS, PS, and SW. Compare your answers to part (a). (d) Suppose that, instead of a market for FRA, the government…arrow_forward
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