Microeconomics (13th Edition)
13th Edition
ISBN: 9780134744476
Author: Michael Parkin
Publisher: PEARSON
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Question
Chapter 7, Problem 27APA
(a)
To determine
What was the value of US imports from Mexico in 2015 and why the value would fall when a 20 percent tariff were imposed on imports.
(b)
To determine
How would the
(c)
To determine
Who in US will benefit and who would lose from the 20 percent tariff.
(d)
To determine
Illustration of who gains and who loses from the tariff of 210 percent on the imports.
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Students have asked these similar questions
Economics
Consider a small country that imports good X from an international market. Let the initial international price of good X be $100, and the country decides
to impose an import tariff of 20% on the product. Use the information in the graph below to answer the following questions. (20 points)
Price of
Supply
130
e
120
Price after tax
a
100
World Price
Import Demand
10
20
100
110
Quantity of good X
1. What is the world price after tariff?
2. Calculate the change in consumer surplus after the tariff.
3. Calculate the change in producer surplus after the tariff.
4. Calculate the change in government tariff revenue after the tariff.
2.1 Suppose that the world price of oil is $60 per barrel and
that the United States can buy all the oil it wants at this
price. Suppose also that the demand and supply schedules
for oil in the United States are as follows:
Price
($ Per Barrel)
55
60
65
70
75
U.S. Quantity
Demanded
26
24
22
20
18
U.S. Quantity
Supplied
14
16
18
20
22
a. On graph paper, draw the supply and demand curves for
the United States.
b. With free trade in oil, what price will Americans pay for
their oil? What quantity will Americans buy? How much
of this will be supplied by American producers? How
Use the Graph below to answer the questions about International Trade:
Price
P1
P2
P3
A
B
D
F
с
E
D
-Quantity
a. At equilibrium, what area represents Consumer Surplus? Blank 1 and Blank 2.
b. At equilibrium, what area represents Producer Surplus? Blank 3 and Blank 4.
c. Which Price Level would make this country become an importer of this good? Blank 5
d. Which Price Level would make this country become an exporter of this good? Blank 6
Chapter 7 Solutions
Microeconomics (13th Edition)
Ch. 7.1 - Prob. 1RQCh. 7.1 - Prob. 2RQCh. 7.2 - Prob. 1RQCh. 7.2 - Prob. 2RQCh. 7.2 - Prob. 3RQCh. 7.3 - Prob. 1RQCh. 7.3 - Prob. 2RQCh. 7.3 - Prob. 3RQCh. 7.3 - Prob. 4RQCh. 7.3 - Prob. 5RQ
Ch. 7.4 - Prob. 1RQCh. 7.4 - Prob. 2RQCh. 7.4 - Prob. 3RQCh. 7.4 - Prob. 4RQCh. 7.4 - Prob. 5RQCh. 7 - Prob. 1SPACh. 7 - Prob. 2SPACh. 7 - Prob. 3SPACh. 7 - Prob. 4SPACh. 7 - Prob. 5SPACh. 7 - Prob. 6SPACh. 7 - Prob. 7SPACh. 7 - Prob. 8SPACh. 7 - Prob. 9SPACh. 7 - Prob. 10SPACh. 7 - Prob. 11SPACh. 7 - Prob. 12APACh. 7 - Prob. 13APACh. 7 - Prob. 14APACh. 7 - Prob. 15APACh. 7 - Prob. 16APACh. 7 - Prob. 17APACh. 7 - Prob. 18APACh. 7 - Prob. 19APACh. 7 - Prob. 20APACh. 7 - Prob. 21APACh. 7 - Prob. 22APACh. 7 - Prob. 23APACh. 7 - Prob. 24APACh. 7 - Prob. 25APACh. 7 - Prob. 26APACh. 7 - Prob. 27APACh. 7 - Prob. 28APA
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