Price ($)4.5.3Demand2,000Quantity (crabs per month)4,0006,0008,00010,000 Price ($)The hypothetical country of Crabby Island has imposed a production quota of 4,000 crabs per month. Use the line segment inthe graph to show this production quota, then answer the question.Use the line segment to show a production quota of 4,000 crabs per month.Production quotaWhat is the price of crab after the introduction of10the quota?9.Supplyprice: $

A production quota is a ceiling placed by the government on the production of a commodity. In the…

Price (S) The hypothetical country of Crabby Island has imposed a production quota of 4,000 crabs per month. Use the line segment im the graph to show this production quota, then answer the question. Use the line segment to show a production quota of 4,000 crabs per month. Production quota What is the price of crab after the introduction of 10 the quota? 9. Supply price: $ 7

Price (S) The hypothetical country of Crabby Island has imposed a production quota of 4,000 crabs per month. Use the line segment im the graph to show this production quota, then answer the question. Use the line segment to show a production quota of 4,000 crabs per month. Production quota What is the price of crab after the introduction of 10 the quota? 9. Supply price: $ 7

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter4: Markets In Action

Section: Chapter Questions

Problem 2SQP

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Price 14 9 8 6 4 Price 6 2 (a) Home Market 456 8 Quantity (b) Import Market 6 Show Transcribed Text Import Refer to the graphs. Suppose that instead of a tariff, Home applies an import quota limiting the amount Foreign can sell to 2 units. a. Determine the net effect of the import quota on the Home economy if the quota licenses are allocated to local producers. b.Calculate the net effect of the import quota on Home welfare if the quota rents are earned by Foreign exporters.
The graph shows the car market in Mexico when Mexico places no restriction on the quantity of cars imported. The world price of a car is $10,000. Suppose the government of Mexico introduces an import quota on imported cars of 4 million a year. Draw a line that shows the effect of the import quota on supply. Label it S + quota. Label it. Draw a point to show the quantity of cars bought in Mexico and the price paid. When the government of Mexico introduces an import quota of 4 million cars, Mexico imports nothing million cars and produces nothing million cars.
Submi Question 15 of 20 > The effects of a tariff are O identical to the effects of a quota, except that the price of the good is higher. O reduced quantity supplied overall, reduced quantity supplied by domestic producers, and a lower price. O reduced quantity supplied overall, decreased quantity supplied by domestic producers, and a lower price. O reduced quantity supplied overall, increased quantity supplied by domestic producers, and a higher price. Activate Windows Hi LAPTOP LOGIN
ЕОC 10.05 Japan imports crayons into its country; they are a price taker in this market. Suppose the world price of crayons is $5. If Japan imposes a $1 tariff on crayons, what would be the domestic price of crayons and what will happen to the quantity bought? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a The quantity bought will increase and the price will be $6. b The quantity bought will fall and the price will be $6. The quantity bought will fall and the price will be $4. d. The quantity bought will increase and the price will be $4.
Figure 3.20 depicts the market for blueberries in the country of Roni. a. Suppose that in an attempt to boost the price of blueberries for its farmers, the government of Roni introduces a quota that limits the total amount that farmers can sell to 200 000 kilos. What is the maximum price at which this quantity could be sold?| b. What would be the farmers' total revenue as a result of the quota? What if this government decides, instead of using a quota, to introduce a price floor of $1.20 per kilo? What would be the surplus/shortage and the resulting total revenue of farmers? Surplus/shortage: Total revenue: $ C. 2.0 1.6 1.2 0.8 0.4 100 200 300 400 500 600 Quantity of blueberries (thousands of kilos) FIGURE 3.20 Price
The hypothetical country of Crabby Island has imposed a production quota of 4,000 crabs per month. Use the line segment in the graph below to show this production quota then answer the following question. Price ($) 10 9 8 7 (O 5 4 3 2 1 2000 Production quota 4000 6000 Quantity (crabs per month) Supply Demand 8000 10000 1. Use the line segment to show a production quota of 4,000 crabs per month. 2. What is the price of crab after the introduction of the quota? GA Number
7. Effect of quotas on local consumers and producers The following graph shows the U.S. domestic market for towels. PRICE (Dollars) 20 18 16 14 ୯ 12 10 bo 4 2 0 0 Domestic Demand 12 Domestic Supply 24 36 QUANTITY (Millions of towels) 48 60 In the absence of foreign trade, the equilibrium price of a towel is s domestic quantity supplied equal million towels. Price (World) Price (Quota) . At this price, both the domestic quantity demanded and the Suppose that trade between the United States and China is open and that the United States initially imposes no tariffs or quotas on towels imported from China. Assume that China has a comparative advantage in producing towels and charges the world price of $6 per towell. (Note: Throughout the problem, assume that the amount demanded by any one country does not affect the world price of towels.) On the previous graph, use the grey line (star symbol) to indicate the world price of towels. At the world price of $6 per towel, the quantity of towels…
16. What is the difference between an agricultural export subsidy and an agricultural production subsidy?
China is a major producer of grains, such aswheat, corn, and rice. Some years ago, the Chinesegovernment, concerned that grain exports weredriving up food prices for domestic consumers,imposed a tax on grain exports.a. Draw the graph that describes the market for grainin an exporting country. Use this graph as thestarting point to answer the following questions.b. How does an export tax affect domestic grainprices?c. How does it affect the welfare of domesticconsumers, the welfare of domestic producers,and government revenue?d. What happens to total welfare in China, asmeasured by the sum of consumer surplus,producer surplus, and tax revenue?
4. Effect of quotas on local consumers and producers The following graph shows the U.S. domestic market for toys. PRICE() 20 -α- 18 Domestic Supply Domestic Demand 10 14 4412 18 24 30 34 Domestic Supply Ро Donaje Demand PH 42 QUANTITY (Mans of toys) 54 60 In the absence of trade with China, the equilibrium price of a toy is domestic quantity supplied equal million toys. At this price, both the domestic quantity demanded and the Suppose that trade between the United States and China is open and that the United States initially imposes no tariffs or quotas on toys imported from China. Assume that China has a comparative advantage in producing toys and charges the world price of $6 per toy. (Note: Throughout the problem, assume that the amount demanded by any one country does not affect the world price of toys.) On the graph, use the grey line (star symbol) to indicate the world price of toys. At the world price of $6 per toy, the quantity of toys demanded by U.S. buyers is milion toys,…
Think about the mobile-market is in equilibrium. Suppose that, as part of a trade policy, the government imposes the tax on mobile-import. Will this affect the supply or the demand? Why? How this will affect the consumer surplus and producer surplus? Show graphically with before- and after-effects on the same graph. How will this change the equilibrium price and quantity of mobile? Explain your reasoning.
Tornado Bulbul hits Bangladesh and affects the crops and fish hatcheries in the coastal areas.What will happen to shrimp production if the hatcheries were affected due to the tornado? Howwill it affect the equilibrium price and quantity of the local shrimp market? On the other hand, if aneighboring country, who exports crops and fishes to Bangladesh, experiences a bumper harvestand export their surplus products to us, say shrimp, what will happen to the equilibrium price andquantity of local shrimp market again in Bangladesh? Draw a diagram and explain your answer.