Using a graph of offer curves, for each of the following, identify the effect of the change listed on the relative price of good Y and on exports of good Y by Nation 2. The demand for X increases in Nation 2. The supply of Y increases in Nation 2.
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Using a graph of offer
- The demand for X increases in Nation 2.
- The supply of Y increases in Nation 2.
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- Using a graph of offer curves, for each of the following, identify the effect of the change listed on the relative price of good X and on exports of good X by Nation 1. The supply of Y increases in Nation 2. The demand for X decreases in Nation 1. Using a graph of offer curves, for each of the following, identify the effect of the change listed on the relative price of good X and on exports of good X by Nation 1. The supply of Y increases in Nation 2. The demand for X decreases in Nation 1.France exports wine and imports beef. Suppose that French wine becomes more fashionable globally and, hence, the price of wine relative to the price of beef increases in world markets. Then: Select one: a. French exports of wine will increase, French consumption of wine will decrease and French imports of beef will increase b. French exports of wine will increase, French consumption of wine will increase and French imports of beef will decrease Oc. French exports of wine will increase, French consumption of wine will increase and French imports of beef will increase d. French exports of wine will increase, French consumption of wine will decrease and French imports of beef will decreaseConsider the figure to the right, which shows the domestic market for a good. Suppose that a tariff is added in that market. Using the line drawing tool, show the effect of this on the domestic market. Label your line either 'D,' or 'S₁. Carefully follow the instructions above and only draw the required object. When a tariff is added, it benefits domestic because it product due to the price of a close producers consumers foreign firms. demand for the domestic Price ($) $20- $10 $16- $14 $12 $10 10 16- 14 $2 12 14 Quantity go Do 16 18 20 Q Q G
- The graph above is the U.S. market for some imported good. Supply is a flat curve. The U.S. can import the Chinese good for $40 and the Mexican good for $48. Assume the U.S. imposes $10 tariffs on each unit of the imported good. What will be the quantity imported? From which country? How your answer will change if the U.S. keep the $10 tariffs but join a trade bloc with Mexico? Will the country’s wellbeing increase or decrease? By how much (hint find the change in consumer surplus and the change in government revenue)? Explain your answers.ALL QUESTIONS APPLY TO GRAPH 23. What quantity will Country B supply from the rest of the world at P=$12? 24. The international equilibrium price is $______. 25. What will be the quantity traded?Exporting countries Which of the following will be true, everything else remaining constant, for a country that exports some good? a)The greater the price elasticity of supply for the good in the exporting country, the greater the volume of exports. b) The more that consumers in the exporting country respond to a change in price, the greater will be the gains from trade. b) The smaller the price elasticity of demand and supply in the exporting country, the greater the gains from trade. c) Some domestic suppliers will lose surplus while others will gain surplus. Choose the statements that match the question and briefly explain your reasoning to understand the question better. Thankyou.
- Price 10 Price at which good sells = 7.25 Price at which good sells = 6 Marginal cost of producing amount traded = 4 Marginal cost of producing amount traded = 2.75 Price Price gap=t gap=t 4,000 6,000 Quantity Figure 18.3 The market for cars: Price gaps reflect trade costs. The exporter's supply curve The consumer's demand curve 15,000In the country of Alpha, -shirts are sold domestically in a competitive market, the equilibrium price is $10, and the equilibrium quantity is 100. (a) Draw a correctly labeled demand and supply graph for the domestic -shirt market in Alpha. Plot the numbers on the graph. (b) Assume the world price of -shirts is $6, and Alpha engages in international trade.(i) Will Alpha be an exporter or importer of -shirts? Explain.(ii) On your graph in part (a), indicate the domestic quantity demanded of -shirts at the world price and label it . (iii) On your graph in part (a), indicate the change in the consumer surplus, shaded completely. (c) Suppose the government of Alpha imposes a tariff of $2 on -shirts. On your graph in part (a), indicate the new domestic quantity supplied of -shirts as a result of the tariff and label it .Consider a small country that exports steel. Suppose the following graph depicts the domestic demand and supply for steel in this country. One of the two price lines represents the world price of steel. Use the following graph to help you answer the questions below. You will not be graded on any changes made to this graph. Demand Supply 100 90 Triangle 80 P2 70 Polygon 50 40 P1 20 10 400 500 600 700 800 900 1000 100 200 300 Quantity of Steel (Tons) Price of Steel (Dollars per ton)
- Steel Industry Consider a small country that exports steel. Suppose the following graph depicts the domestic demand and supply for steel in this country. One of the two price lines represents the world price of steel. Use the following graph to help you answer the questions below. You will not be graded on any changes made to this graph. 1. Because this country exports steel, the world price is represented by P1 or P2. Suppose that a “pro-trade” government decides to subsidize the export of steel by paying $10 for each ton sold abroad. 2. With this export subsidy, the price paid by domestic consumers is $???? per ton, and the price received by domestic producers is $???? per ton. 3. The quantity of steel consumed by domestic consumers INCREASES or REMAINS UNCHANGED or DECREASES, the quantity of steel produced by domestic producers INCREASES or REMAINS UNCHANGED or DECREASES, and the quantity of steel exported INCREASES or REMAINS UNCHANGED or DECREASES. 4. TRUE or FALSE:…Assume that the United States, as a steel-importing nation, is large enough so that changes in the quantity of its imports influence the world price of steel. The following table shows the U.S. supply and demand schedules for steel, along with the overall amount of steel supplied to U.S. consumers by domestic and foreign producers. Price Quantity Supplied (Dollars per ton) (Domestic) (Domestic plus Imports) Quantity Demanded 100 0 0 15 200 4 14 300 8 13 400 12 12 500 16 11 600 20 10 700 5 24 9 Using the data in the table, use the blue points (circle symbol) to plot the demand curve and use the orange points (square symbol) to plot the supply curve (domestic plus imports) on the following graph. Then use the black cross to indicate the equilibrium price and quantity. BOO -O Demand -P Supply us free trade + Equilibrium Free trade 4 Supply wond wit Equilibrium PRICE (Dollars per fon) 700 600 500 400 300 200 100+ 0 6 0 1 2 3 4 10 12 14 16 18 20 22 24 0 2 4 QUANTITY (Tons of steel) With…In an effort to protect its domestic pear production, the Kingdom of Genovia decides to place an import tariff on pears. Which of the following correctly explains the tariff’s effect on domestic demand? Choice 1 of 4:The tariff will raise domestic prices and decrease the quantity demanded.Choice 2 of 4:The tariff will raise domestic prices and cause the demand curve to shift left.Choice 3 of 4:Tariffs do not impact the domestic quantity demanded.Choice 4 of 4:The tariff will lower domestic prices and increase the quantity demanded.