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.
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- 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.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,…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…
- The US government reduces the tariff on imported coffee will this affect the supply or the deman for coffeeWhat Type of attraction are in Uk? and which are the main Characteristcs of supply? (what make different from the rest of the world)The following graph shows intra-industry trade in the United States for two types of yogurts: Yoplait (a famous French brand) and Dannon (a famoud American brand): 13 12 11. 10 A 9 83 7 2 1 0 -1 10 1 -11 CHG. O GHOI. O HLP. US Market for Yoplait (Y) Supply of Yoplait O GHPK. 8 Demand for Yoplait 9 10 11 12 13 Yoplak 15 12 Price 11 10 A 0 1 2 US Market for Dannon (D) Refer to the above graph. At the price of $6 for Y, and relative to an autarkic situation, intra- industry trade leads to a loss for producers of: Supply of Dannon Demand for Dannon Dannon 10 11 12 13
- QUESTION 3 The U.S. Market for Computers sdamertie pply curre) Domestic price writh tanif Wadd price 2.000 D domestic de mandauve) 200 Quantity (thourande of unta) 100 120 I90 Referring to the above figure, how much revenue will the US government collect as a result of the tariff on computers? a. $168 millisn Ob. $76 million OC $28 million d. $280,000The following graph shows intra-industry trade in the United States for two types of yogurts: Yoplait (a famous French brand) and Dannon (a famoud American brand): -1 13 12 11 10 A 9 8G 7 2 Price 1. 0 0 2 US Market for Yoplait (Y) Supply of Yoplait 5 6 7 Loss of LQM. Gain of LQM. Loss of KLMR. Demand for Yoplait Gain of KLMR. Yoplak 9 10 11 12 13 14 12 Price 11 10 A US Market for Dannon (D) 2 3 4 5 7 Supply of Dannon Refer to the above graph. At the price of $6 for D, intra-industry trade leads to which of the following for the United States: 8 Demand for Dannon Dannon 9 10 11 12 13If the United States implements a subsidy on domestic salmon, this will Question 5Answer a. increase the amount of salmon imported into the United States and increase the production of salmon in the United States. b. reduce the amount of salmon imported into the United States and reduce production of salmon in the United States. c. increase the amount of salmon imported into the United States and reduce the production of salmon in the United States. d. reduce the amount of salmon imported into the United States and increase the production of salmon in the United States. Clear my choice CheckQuestion 5
- Price ($) The hypothetical country of Crabby Island has imposed a production quota of 4,000 crabs per month. Use the line segment in the graph 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: $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.QUESTION 3 3A. Construct a market for cotton imported into the U.S. with an equilibrium price of $1/bale and a quantity exchanged of 100 million bales. 3B. Illustrate the effect on the market for cotton imported into the if the U.S. if the federal government imposes an import quota at 50 million bales.