SubmiQuestion 15 of 20 >The effects of a tariff areO 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 WindowsHiLAPTOP LOGIN

A tariff increases the domestic quantity supplied but overall quantity supplied will reduce…

The effects of a tariff are identical to the effects of a quota, except that the price of the good is higher. reduced quantity supplied overall, reduced quantity supplied by domestic producers, and a lower price. reduced quantity supplied overall, decreased quantity supplied by domestic producers, and a lower price. reduced quantity supplied overall, increased quantity supplied by domestic producers, and a higher price.

The effects of a tariff are identical to the effects of a quota, except that the price of the good is higher. reduced quantity supplied overall, reduced quantity supplied by domestic producers, and a lower price. reduced quantity supplied overall, decreased quantity supplied by domestic producers, and a lower price. reduced quantity supplied overall, increased quantity supplied by domestic producers, and a higher price.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter17: International Trade

Section: Chapter Questions

Problem 2.5P

See similar textbooks

Similar questions

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…
5. A graphical comparison of tariffs and quotas Alagir and Ertil are small countries that protect their economic growth from rapidly advancing globalization by limiting the import of rugs to 20 million. To this end, each country imposes a different type of trade barrier when the world price (Pw) is $2,000. In Alagir, the government decides to impose a tariff of $3,000 per rug; in Ertil, the government implements a quota of 20 million rugs. Assume that Alagir and Ertil have identical domestic demand (Do) and supply (S) curves for rugs as shown on the following graph. Under these conditions, the price of rugs is $5,000 per rug in each country. 10000 ( ) 8000 8000 7000 8000 5000 4000 3000 2000 1000 0 0 Pu 10 Do 20 D₁ XX ✩ XX 30 40 50 60 70 QUANTITY (Millions of rugs) 80 S 90 100 (?)
Consider the market below for a large country. Focus on the equilibrium when the country imposes a tariff. How large is the tariff? Price $25 $20 $15 10 20 30 40 Quantity Select one: O a. $20 O b. $25 O c. $10 O d. $15
7) Refer to the Figure 3 below, the total emclency loss ls Figure 3 Price, P Pr Pw D D D' Quantity, O Select one: O AD+C O B.D+C+d OC.c+e O D.b+d
What does the term "import demand" describe? O A. Relative demand for the importing country. B. The excess of domestic demand over domestic supply. OC. The excess of foreign supply over foreign demand. O D. Demand for a good the country would like to import because it does not produce this good domestically.
The following graph shows the U.S. domestic market for towels. PRICE (Dolars) Domestic Demand Domestic Supply 24 72 1.20 QUANTITY (Millions of towels) Price (World) Price (Quota) (7) In the absence of foreign trade, the equilibrium price of a towel is domestic quantity supplied equal million towels. 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 $12 per towel. (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. million towels, the quantity of towels supplied by At the world price of $12 per towel, the quantity of towels demanded by U.S. buyers is U.S.…
donetic P Tariff Tar Revenue Damestic Quantity b. What are the price-quantity effects of this tariff on the following? (Assume the country imposing the tariff is a small part of the world market) Domestic consumers: Price will (Click to select) and quantity will (Cick to select) v Domestic producers: Price will (Cick to select) and quantity will [(Clck to select) v Foreign exporters: Price will (Click to select) and quantity will (Cick to select) Price
Kawmin is a small country that produces and consumesjelly beans. The world price of jelly beans is$1 per bag, and Kawmin’s domestic demand andsupply for jelly beans are governed by the followingequations:Demand: QD = 8 − PSupply: QS = P,where P is in dollars per bag and Q is in bags of jellybeans.a. Draw a well-labeled graph of the situation inKawminif the nation does not allow trade.Calculatethe following (recalling that the area ofa triangle is ½ × base × height): the equilibriumprice and quantity, consumer surplus, producersurplus, and total surplus.b. Kawmin then opens the market to trade. Drawanother graph to describe the new situation inthe jelly bean market. Calculate the equilibriumprice, quantities of consumption and production,imports, consumer surplus, producer surplus, andtotal surplus.c. After a while, the Czar of Kawmin respondsto the pleas of jelly bean producers by placinga $1 per bag tariff on jelly bean imports. On a graph, show the effects of…
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
3/25/22, 10:55 PM Assignment Print View 4. The graph below shows the market for tires in the United States, a nation that is open to international trade but is assumed to be a price taker unable to affect the world price of tires. Market for Tires 320 Tools -- 280 New Equilibri Qs+ quota 240 S+ Quota 200 160 120 80 P. (280, 80) 40 40 80 120 160 200 240 280 320 Quantity (millions of tires) a. Using the graph above, at the world price of $80 per tire, how many tires will the United States import? million tires Now suppose the U.S. government imposes a quota as shown in the graph above. b. Using this same graph, indicate the new market equilibrium with the quota imposed and the domestic quantity supplied (Qs). https://ezto.mheducation.com/hm.tpx?todo=c15SinglePrintView&singleQuestionNo=4.&postSubmissionView=13252718327623084&wid=13252718466068729&rol... 1/3 Price (dollars per tire)
If a country removes a tariff on imported shoes, we expect the domestic price of shoes to and the number of shoes consumed in the domestic market to a. fall; fall b. fall; rise c. rise; fall d. rise: rise
If a large country imposes a subsidy O the world price falls foreign importers gain O all available choices O foreign exporters lose