6. Suppose Home is a small country and has a monopolist with Marginal cost 2q. The world price is p = 40. The Home inverse demand function is P = 150 - Q. (a) Find the Domestic Free Trade equilibrium outcome. P = (domestic) q =_ Imports -
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- 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…10 10 20 30 40 50 60 70 80 90 100 Baseball caps (thousands per month) Suppose that the world price of baseball caps is €1 and there are no import restrictions on this product. Assume that Spanish consumers are indifferent between domestic and imported baseball caps. Instructions: Enter your answers as whole numbers. a. What quantity of baseball caps will domestic suppliers supply to domestic consumers? thousand b. What quantity of baseball caps will be imported? thousand Now suppose a tariff of €1 is levied against each imported baseball cap. C. After the tariff is implemented, what quantity of baseball caps will domestic suppliers supply to domestic consumers? thousand d. After the tariff is implemented, what quantity of baseball caps will be imported? thousand Price (€ per cap)Home's demand curve for wheat is P = 10 - (1/20)Qd. Its supply curve is P = 4+ (1/20)Qs Foreign's demand curve for wheat is P * = 8 - (1/20) Qd* Its supply curve is P* = 2+(1/20)Qs* Determine the effect of the tariff on Home import-competing producers APS = Home consumers ACS = Home government tariff revenue AGR= Adding these effects together AWAPS + ACS + AGR =
- 15. Which one of the following statements about international trade is FALSE? a) when consumption externality is ignorant, importing will always be environmentally beneficial b) Import happens only when the global price for a goods is smaller than the domestic price c) Exports of carbon emissions happens when a country importing goods from other countries d) Multi-national companies' production decisions should be blamed for creating pollution havens in less-developed countries e) The process and production methods used in trade agreements should be blamed for creating pollution havens. 16. Which one of the following statements about trade and the environment is true? a) Inclusion of externality impacts increases the net gains from trade b) Inclusion of externality impacts implies that international trade decreases overall social welfare c) Free trade always has a damaging effect on the environment d) Free trade always has a beneficial effect on the environment e) Inclusion of…Question 2 Suppose that the demand curve for vegetable fibre in Euroland is given by QD = 40 − 2P , and that the supply curve is given by QS = 2/3 (P) (i.e. two thirds of P). The world price of vegetable fibre is €9 per unit. Suppose the Euroland government imposes a tariff of €3 per unit. The level of imports of vegetable fibre after the tariff will be A. 12 units B. 8 units C. 4 units D. 16 units Full explain this question and text typing work only thankssuppose the supply from China is described by Qs=0.01P-1 and the domestic (American) demand is.Qd-11-0.1P The quantities are in millions of phones and the prices are in $/phone. If the U.S. federal government only cared about its own residents' welfare then it would make sense to ignore producer surplus since those benefits accrue to producers in China. The U.S. is considering imposing a small tariff of $t in order to push down the price producers receive and capture more surplus for America. Fill in the table below to find the surplus for America (consumer surplus + tariff revenue) for different sized tariffs. tariffAmerica's surplus $0 $1250 million $100 $1462.5 million $200$____ million $300$ $400$ $500$1562.5 million million million
- A small country's demand curve is given by Q = 23 - 2P, and its supply curve is given by Q = 2P - 6. Assume that there is initially free trade and that the world price under free trade is $4. If an import quota of 9 is now introduced in this country, then this !! country's government revenue will be . Assume that foreign firms have to acquire an import license at full value.Consider two countries, home and foreign and a single good, Y. Assume that home country imports good Y from foreign country. The import demand curve for good Y in home country is given by: MD = 170 – 2PY and the export supply curve for good Y in Foreign country is given by: EX = PY – 40. A) Consider the use of import tariff vs. import quota in Home country that will result in the same amount of good Y imports and the domestic price of good Y. If quota rents are given to Foreign country, which policy, i.e., import tariff vs. import quota, is preferable by Home country on the basis of its effect on social welfare? Explain your reasoning.B. If Oman imposing an import tariff on the used car imports from UAE (Foreign), explain the cost and benefits tariff as an importing country to Oman and an exporting county to UAE(Use appropriate diagram to explain your answer). Your answer can limit based on following theoretical assumptions: Suppose that there are two countries Home (Oman) and Foreign. Both countries consume and produce used cars which can be costless transported between these countries. In each country, it is a competitive industry. Suppose that in the absence of trade the price of used cars at Home exceeds the corresponding price at Foreign. C. If Oman allowing an export subsidy to Diagrammatically explain its effects on the Oman market (Exporting country) and as an importing country to UAE market. Your answer can limit based on following theoretical assumptions: our vegetable exporters to UAE, Suppose that there are two countries Home (Oman) and Foreign (UAE). Both countries consume and produce vegetables, which…
- The figure below shows the hypothetical domestic supply and demand for baseball caps in the country of Spain. Domestic Supply and Demand for Baseball Caps Spain Price (€ per cap) 10 X 10 20 30 40 50 60 70 80 90 100 9 8 7 5 3 2 1 0 Sd Ddconsider the domestic demand for apples to be given by Qd= 25-0.5P and that apples can be imported at an international price of $40 per basket. if the government percieves this price to be too high and decides to subsidize imports by $20 per basket. this policy will increase the imports of apples by ____ and create a deadweight loss of ____. a) 5 units, $20 b) 20 units, $800 c) 15 units, $50 d) 10 units, $100Home's demand curve for wheat is P = 10 - (1/20)Qd. Its supply curve is P = 4 + (1/20)Qs Eoreign's demand curve for wheat is P * = 8 - (1/20)Qd* Its supply curve is P* = 2+(1/20)Qs* Determine the effect of the tariff on Home import-competing producers APS = Home consumers ACS = Home government tariff revenue AGR = Adding these effects together AW = APS + ACS + AGR =