EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Question
Chapter 9, Problem 9.10P
a)
To determine
To Calculate: The domestic equilibrium in the portable radio market.
b)
To determine
To Calculate: The following
- New
Market Equilibrium price when trade was unencumbered - Quantity of portable radios would be produced domestically
- Quantity of portable radios would be imported
c)
To determine
To Calculate: The following
- Change the market
Equilibrium - Quantity of collected tariff revenues.
- Quantity of
consumer surplus would be transferred to domestic producers Deadweight loss from the tariff
d)
To determine
To Graph: The results.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The following graph shows the domestic supply of and demand for soybeans in Guatemala. The world price (Pw ) of soybeans is $540 per ton and is
represented by the horizontal black line. Throughout the question, assume that the amount demanded by any one country doès not affect the world
price of soybeans and that there are no transportation or transaction costs associated with international trade in soybeans. Also, assume that domestic
suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place.
900
Domestic Demand
Domestic Supply
855
810
765
720
675
630
585
Pw
540
495
450
40
80
120 160
200 240
280
320
360
400
QUANTITY (Tons of soybeans)
PRICE (Dollars per ton)
The following graph shows the domestic supply of and demand for soybeans in Venezuela. The world price (Pw) of soybeans is $530 per ton and is
represented by the horizontal black line. Throughout the question, assume that the amount demanded by any one country does not affect the world
price of soybeans and that there are no transportation or transaction costs associated with international trade in soybeans. Also, assume that
domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place.
(?
935
Domestic Demand
Domestic Supply
890
845
800
755
710
665
620
575
P.
530
485
40
80
120
160
200
240
280
320
360
400
QUANTITY (Tons of soybeans)
PRICE (Dollars per ton)
The following graph shows the domestic supply of and demand for soybeans in Guatemala. The world price (Pw ) of soybeans is $520 per ton and is
represented by the horizontal black line. Throughout the question, assume that the amount demanded by any one country does not affect the world price
of soybeans and that there are no transportation or transaction costs associated with international trade in soybeans. Also, assume that domestic
suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place.
880
Domestic Demand
Domestic Supply
840
800
760
720
680
640
600
560
P
520
480
10
20
30
40
50
60
70
80
06
100
QUANTITY (Tons of soybeans)
If Guatemala is open to international trade in soybeans without any restrictions, it will import|
tons of soybeans.
Suppose the Guatemalan government wants to reduce imports to exactly 40 tons of soybeans to help domestic producers. A tariff of $
per ton
will achieve this.
A tariff set at this level would raise $
in…
Chapter 9 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
Ch. 9.2 - Prob. 1MQCh. 9.2 - Prob. 2MQCh. 9.2 - Prob. 1TTACh. 9.2 - Prob. 2TTACh. 9.4 - Prob. 1MQCh. 9.4 - Prob. 2MQCh. 9.5 - Prob. 1MQCh. 9.5 - Prob. 2MQCh. 9.8 - Prob. 1MQCh. 9.8 - Prob. 2MQ
Ch. 9.8 - Prob. 1TTACh. 9.8 - Prob. 2TTACh. 9.9 - Prob. 1MQCh. 9.9 - Prob. 2MQCh. 9.9 - Prob. 1TTACh. 9.9 - Prob. 2TTACh. 9.10 - Prob. 1MQCh. 9.10 - Prob. 2MQCh. 9.10 - Prob. 1TTACh. 9.10 - Prob. 2TTACh. 9.10 - Prob. 1.1MQCh. 9.10 - Prob. 2.1MQCh. 9.10 - Prob. 3.1MQCh. 9.10 - Prob. 1.1TTACh. 9.10 - Prob. 2.1TTACh. 9.10 - Prob. 1.2MQCh. 9.10 - Prob. 2.2MQCh. 9.10 - Prob. 3.2MQCh. 9 - Prob. 1RQCh. 9 - Prob. 2RQCh. 9 - Prob. 3RQCh. 9 - Prob. 4RQCh. 9 - Prob. 5RQCh. 9 - Prob. 6RQCh. 9 - Prob. 7RQCh. 9 - Prob. 8RQCh. 9 - Prob. 9RQCh. 9 - Prob. 10RQCh. 9 - Prob. 9.1PCh. 9 - Prob. 9.2PCh. 9 - Prob. 9.3PCh. 9 - Prob. 9.4PCh. 9 - Prob. 9.5PCh. 9 - Prob. 9.6PCh. 9 - Prob. 9.7PCh. 9 - Prob. 9.8PCh. 9 - Prob. 9.9PCh. 9 - Prob. 9.10P
Knowledge Booster
Similar questions
- Recently, China placed tariffs on the importation of US soybeans. Assume that the domestic market for soybeans in China is described by the following equations: Demand: P = 115 – 1/15Q Supply: P = 55 + 1/15Q Where P is Yuan per bushel of soybeans and Q is 10 million bushels per year. The world price for soybeans is ¥65/bushel. Graph the soybean market in China showing equilibrium both with no barriers to trade and with a ¥15/bushel tariff. Be sure to fully and clearly label the graph including the Domestic Demand curve, Domestic Supply curve, the World Price, and the Price with tariffs. 3. How many bushels of soybeans can the US export to China if there are no tariffs? How many bushels with the imposed tariff?arrow_forwardRecently, China placed tariffs on the importation of US soybeans. Assume that the domestic market for soybeans in China is described by the following equations: Demand: P = 115 – 1/15Q Supply: P = 55 + 1/15Q Where P is Yuan per bushel of soybeans and Q is 10 million bushels per year. The world price for soybeans is ¥65/bushel. Graph the soybean market in China showing equilibrium both with no barriers to trade and with a ¥15/bushel tariff. Be sure to fully and clearly label the graph including the Domestic Demand curve, Domestic Supply curve, the World Price, and the Price with tariffs. 4. Who are the greatest benefactors of China’s tariff on US soybeans?arrow_forwardThe following graph shows the domestic demand for and supply of maize in Kenya. The world price (Pw) of maize is $260 per ton and is displayed as a horizontal black line. Throughout the question, assume that all countries under consideration are small, that is, the amount demanded by any one country does not affect the world price of maize and that there are no transportation or transaction costs associated with international trade in maize. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. PRICE (Dollars per ton) 485 Domestic Demand Domestic Supply 460 435 410 385 360 335 P 310 285 260 PW 235 0 10 20 30 40 50 60 70 80 90 100 QUANTITY (Tons of maize) (?) If Kenya is open to international trade in maize without any restrictions, it will import tons of maize. Suppose the Kenyan government wants to reduce imports to exactly 20 tons of maize to help domestic producers. A tariff of $ achieve this. A tariff…arrow_forward
- China placed tariffs on the importation of US soybeans. Assume that the domestic market for soybeans in China is described by the following equations: Demand: P = 11.5 – Q Supply: P = 5.5 + Q Price is in 10 Yuan (¥) per bushel of soybeans and the units for Quantity are 100 million bushels per year. This is to make graphing simpler. This does NOT mean that the price is 10 and quantity is 100. Rather it means that if the price was 40¥ and the quantity was 7,500,000,000 bushels, this would plot as 4 and 7.5 respectively. The world price for soybeans is ¥65/bushel (this would graph as a horizontal line at 6.5). Graph the soybean market in China showing equilibrium both with no barriers to trade and with a ¥15/bushel tariff. Be sure to fully and clearly label the graph including: Domestic Demand curve (D), Domestic Supply curve (S), the World Price (WP), and the Price with tariffs (PT), along with the quantities imported both with and without the tariff. Based on your graph, what…arrow_forwardQuestion 31 Consider a small country where the domestic market for sandals is described by the following demand and supply equations, respectively: P = 100 – (1/2)Q and P = 20 + (1/3)Q where P represents the price of a pair of sandals and Q represents the quantity of sandals. The world price for a pair of sandals is $45. Therefore the gains from trade would be $135.00 $102.50 $88.75 $122.50arrow_forwardThe demand for cameras in a certain country is given by D = 8000 – 30P, where P is the price of acamera. Supply by domestic camera producers is S = 4000 + 10P. If this economy opens to tradewhile the world price of a camera is $50, and the government imposes a tariff of $30 per camera,what will be the quantity of cameras that this country imports or exports?arrow_forward
- Consider that the current world price for copper ore is $5.20 per pound. Suppose the domestic market for copper ore in Chile is described by the following demand and supply equations, respectively: P = 8.80 -0.015Q and P = 0.8 +0.025Q, where P is the price per pound, measured in dollars, and Q is the quantity measured in thousands of pounds per month. Similarly, suppose that the domestic market for copper ore in Japan is described by the following demand and supply equations: P = 6.80 -0.02Q and P = 0.8 +0.04Q, where P is the price per pound, measured in dollars, and Q is the quantity measured in thousands of pounds per month. (Question 7 of 8) After receiving requests from lobbyists and domestic producers, the government of the importing country imposes a tariff of $0.30 in the market for copper ore. As a result of the government's policy, what is the change in the government's revenue in the importing country? (report your answer at 2 decimal places)arrow_forwardSuppose the demand and the supply for lumber (harvested wood processed in a sawmill) used for construction in Australia are given byQD =100 – 2PQS = 1/2PAssume also that the market is perfectly competitive.Suppose the lumber market described was closed to the rest of the world. Now it opens to trade and the world price of lumber is 20. Compute the equilibrium price, quantity supplied by domestic producers, and quantity demanded by domestic consumers.2.Use a demand and supply graph to show how consumer surplus, producer surplus, and total surplus change with international trade.3. Now suppose that Country A is a major exporter of lumber to Australia and in an effort to impose sanctions on Country A, Australia imposes a tariff of t=10 on all lumber imported into Australia. Use a graph of supply and demand to show how the tariff changes consumer, producer and total surplus.4. Calculate the equilibrium price, quantity produced and demanded domestically, tariff revenue, and deadweight loss.arrow_forwardConsider a small country. The domestic (home) demand is Qd = 120−3P and supply is Qs = 2P −20 whereQs and Qd are the quantity supplied and demanded, respectively, and P is the price per unit.A) Find the equilibrium price and quantity when the domestic market is closed to international trade.Now, suppose the country opens up to international trade, and the world price is $20 per unit.B) Find the new equilibrium price, domestic quantity supplied and demanded, and quantity imported.C) Suppose the domestic government imposes a tariff of $4 per unit. Find the equilibrium price, domesticquantity supplied and demanded, quantity imported, and tax revenue collected.D) Now, suppose the government impose a quota that limits the quantity of imports to 20 units. Find thenew equilibrium price, domestic quantity supplied and demanded, and quantity imported.E) Calculate Consumer surplus, producer surplus, and total surplus, with free tradeF) Calculate Consumer surplus, producer surplus, tax revenue,…arrow_forward
- The equation for the demand curve for writing paper in Belgium is QD=350 (P/2) [or P = 700 - 2QD] The equation for the supply curve for writing paper in Belgium is - 200+ 5P[or P = 40 + Qs/5] Qs == 1. What are the equilibrium price and quantity if there is no international trade? P= 613 输入答案 ; Q= 输入答案 2. What are the equilibrium quantities for Belgium if the nation can trade freely with the rest of the world at a price of 120? Qd= 输入答案 ; Qs= 输入答案 I 3. What is the net national gain or loss for Belgium when it shifts from no trade to free trade? (with the "one dollar, one vote" assumption) Net Gain/Loss by 输入答案arrow_forwardThe demand for cars in a certain country is given by: ? = 15,000 − 0.3?, where P is the price of a car. Supply by domestic car producers is: ? = 5,000 + 0.2?. Suppose this economy opens to trade, and the world price of a car is $13,000. If the government imposes a quota allowing 3,000 cars to be imported, then the domestic price of cars will bearrow_forwardConsider the crude oil market in the mid-1980s in the United States. Equilibrium price was $22.67 per barrel with 9.33 million barrels consumed on a daily basis. If the world price is lower than the equilibrium price for a domestic nation (in this case, the United States), the possibility exists for foreign countries to export a product to the domestic nation. This is the case for crude oil. In this market, assume the world price of crude oil is $16 per barrel: Which of the following combinations of quantity supplied and quantity demanded would exist in the United States if the world price of crude oil is $16 per barrel as described above. O A. A quantity demanded of 11 and a quantity supplied of 6. O B. Aquantity demanded of 11 and a quantity supplied of 11. O C. A quantity demanded of 6 and a quantity supplied of 11. O D. All of the above are possible when the world price is $16 per barrel.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics, 7th Edition (MindTap Cou...EconomicsISBN:9781285165875Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Macroeconomics (MindTap Course List)EconomicsISBN:9781285165912Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou...
Economics
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:9781285165912
Author:N. Gregory Mankiw
Publisher:Cengage Learning