Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 9, Problem 4SPPA
To determine
Producers of the United States will be worse off form the free trade in shoes with Brazil is to be determined.
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Students have asked these similar questions
• Use the supply and demand data to complete the table.
Price
Quantity Demanded
Quantity Supplied
$5
5000
800
10
4000
1200
15
3000
1600
20
2000
2000
25
1000
2400
30
500
3000
Find the equilibrium price and quantity.
The country allows free trade with no restrictions. The free trade price of this good is $10.
Price
Quantity Demanded Domestically
Quantity Supplied Domestically
Import/Export
Quantity Imported/Exported
The country imposes a 50% tariff. Complete the following:
Price
Quantity Demanded Domestically
Quantity Supplied Domestically
Import/Export
Quantity Imported/Exported
Tariff Revenue
Question 7
Consider again this same graph:
Price
40
8
7
6
5
4
3
2
0
Tariff
Domestic
supply
Domestic
demand
10 20 30 40 50 60 70 80
World
price
Quantity
Tell me the amount of gains from trade, carefully following all numeric instructions.
Macmillan Leaming
International Trade – End of Chapter Problem
Consider the graph of domestic supply and demand for oil in the United States. Without trade, the domestic price of oil is $50 a
barrel. With trade, the United States imports oil.
a. Shift the price line to reflect the world price for oil.
Price (5 per barrel)
100
90
50
10
A
B
C
L
Quantity
supplied
domestically
F
Quantity
demanded
domestically
Quantity
imported
Area of
M
e
12
Quantity (millions of barrels a day)
consumer
surplus
Area of
producer
surplus
H
N
15
b. Use the letters and values (prices and quantities) in the graph to fill in the table:
Without trade
Domestic Supply
Price line
Domestic Demand
With trade
Chapter 9 Solutions
Foundations of Economics (8th Edition)
Ch. 9 - Prob. 1SPPACh. 9 - Prob. 2SPPACh. 9 - Prob. 3SPPACh. 9 - Prob. 4SPPACh. 9 - Prob. 5SPPACh. 9 - Prob. 6SPPACh. 9 - Prob. 7SPPACh. 9 - Prob. 8SPPACh. 9 - Prob. 9SPPACh. 9 - Prob. 10SPPA
Ch. 9 - Prob. 11SPPACh. 9 - Prob. 1IAPACh. 9 - Prob. 2IAPACh. 9 - Prob. 3IAPACh. 9 - Prob. 4IAPACh. 9 - Prob. 5IAPACh. 9 - Prob. 6IAPACh. 9 - Prob. 7IAPACh. 9 - Prob. 8IAPACh. 9 - Prob. 9IAPACh. 9 - Prob. 1MCQCh. 9 - Prob. 2MCQCh. 9 - Prob. 3MCQCh. 9 - Prob. 4MCQCh. 9 - Prob. 5MCQCh. 9 - Prob. 6MCQCh. 9 - Prob. 7MCQ
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