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.

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Answer 1

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 elasticity of demand and supply influence the revenue that the tariff generates?

(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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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.

[India is the world’s largest consumer of sugar. Assume the world price for sugar is $750 per ton.] [Assume India currently has a tariff of $50 per ton on sugar and imports 7 million tons of sugar. Show this situation in a graph. Label the quantity demanded and the quantity supplied domestically and imports clearly on a graph. Explain your graph in 3-4 sentences. 2. [ Suppose India decides to remove the tariff, show the effect of this change on India’s imports on the graph. Clearly label the new domestic quantity demanded and the quantity supplied. You must use the same graph as you have drawn in answer to Part a to show this new scenario. How does this policy affect consumers, producers, and the government in India? You only have to state who benefits or harms from the policy. 3. [Label the areas in your graph and fill in the following table. With Tariff Free Trade (after the tariff is removed) Consumer Surplus Producer Surplus Government…

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

Answer 2

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 elasticity of demand and supply influence the revenue that the tariff generates?

(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.

Expert Solution & Answer

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Answer 3

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 elasticity of demand and supply influence the revenue that the tariff generates?

(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.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

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 elasticity of demand and supply influence the revenue that the tariff generates?

(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.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

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 elasticity of demand and supply influence the revenue that the tariff generates?

(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.

Answer 6

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.

Answer 7

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.

Answer 8

(b)

To determine

How would the elasticity of demand and supply influence the revenue that the tariff generates?

Answer 9

(b)

To determine

How would the elasticity of demand and supply influence the revenue that the tariff generates?

Answer 10

(c)

To determine

Who in US will benefit and who would lose from the 20 percent tariff.

Answer 11

(c)

To determine

Who in US will benefit and who would lose from the 20 percent tariff.

Answer 12

(d)

To determine

Illustration of who gains and who loses from the tariff of 210 percent on the imports.

Answer 13

(d)

To determine

Illustration of who gains and who loses from the tariff of 210 percent on the imports.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 7.1 - Prob. 1RQ Ch. 7.1 - Prob. 2RQ Ch. 7.2 - Prob. 1RQ Ch. 7.2 - Prob. 2RQ Ch. 7.2 - Prob. 3RQ Ch. 7.3 - Prob. 1RQ Ch. 7.3 - Prob. 2RQ Ch. 7.3 - Prob. 3RQ Ch. 7.3 - Prob. 4RQ Ch. 7.3 - Prob. 5RQ

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.

Solution Summary: The author explains that the value of US imports from Mexico was nearly 303 billion in 2015. The elasticity of demand and supply influences the revenue that a 20 percent tariff generates.

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.

How would the elasticity of demand and supply influence the revenue that the tariff generates?

Who in US will benefit and who would lose from the 20 percent tariff.

Illustration of who gains and who loses from the tariff of 210 percent on the imports.

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