Macroeconomics
13th Edition
ISBN: 9780134744452
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 15, Problem 18APA
(a)
To determine
Identify the lifting of an import ban on haggis effects on producers and consumers in Country U.
(b)
To determine
Illustrate the effect of the lifting import ban on the graph of Country U’s market for haggis.
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2
Using the graph, assume that the government imposes a $1 tariff on solar panels.
Answer the following questions given this information.
Price
$13
65
8
Domestic
Supply
$1.00
Tariff
World
Price
Domestic
Demand
о
30 40
60
84 96
Quantity
a. What is the domestic price and quantity demanded of solar panels after the tariff
is imposed?
b. What is the quantity of solar panels imported before the tariff?
c. What is the quantity of solar panels imported after the tariff?
d. What would be the amount of consumer surplus before the tariff?
e. What would be the amount of consumer surplus after the tariff?
f. What would be the amount of producer surplus before the tariff?
g. What would be the amount of producer surplus after the tariff?
h. What would be the amount of government revenue because of the tariff?
i. What would be the total amount of deadweight loss due to the tariff?
Assume Australia is an importer of sofas and there are no trade restrictions. Australian consumers buy 1 000 000 sofas per year, of which 450 000 are produced domestically and 550 000 are imported.a Suppose that a technological advance among Swedish sofa manufacturers causes the world price of sofas to fall by $200. Draw a graph to show how this change affects the welfare of Australian consumers and Australian producers, and how it affects total surplus in Australia.b After the fall in price, Australian consumers buy 1 150 000 sofas, of which 300 000 are produced domestically and 850 000 are imported. Calculate the change in consumer surplus, producer surplus and total surplus from the price reduction.c If the government responded by putting a $200 tariff on imported sofas, what would this do? Calculate the revenue that would be raised and the deadweight loss. Would it be a good policy from the standpoint of Australian welfare? Who might support the policy?d Suppose that the fall in…
9 Assume Australia is an importer of sofas and there are no trade restrictions. Australian
consumers buy 1 000 000 sofas per year, of which 450 000 are produced domestically and
550 000 are imported.
a Suppose that a technological advance among Swedish sofa manufacturers causes
the world price of sofas to fall by $200. Draw a graph to show how this change affects
the welfare of Australian consumers and Australian producers, and how it affects total
surplus in Australia.
b After the fall in price, Australian consumers buy 1 150 000 sofas, of which 300 000 are
produced domestically and 850 000 are imported. Calculate the change in consumer
surplus, producer surplus and total surplus from the price reduction.
c Ifthe government responded by putting a $200 tariff on imported sofas, what would this
do? Calculate the revenue that would be raised and the deadweight loss. Would it be a
good policy from the standpoint of Australian welfare? Who might support the policy?
d Suppose that the fall…
Chapter 15 Solutions
Macroeconomics
Ch. 15.1 - Prob. 1RQCh. 15.1 - Prob. 2RQCh. 15.2 - Prob. 1RQCh. 15.2 - Prob. 2RQCh. 15.2 - Prob. 3RQCh. 15.3 - Prob. 1RQCh. 15.3 - Prob. 2RQCh. 15.3 - Prob. 3RQCh. 15.3 - Prob. 4RQCh. 15.3 - Prob. 5RQ
Ch. 15.4 - Prob. 1RQCh. 15.4 - Prob. 2RQCh. 15.4 - Prob. 3RQCh. 15.4 - Prob. 4RQCh. 15.4 - Prob. 5RQCh. 15 - Prob. 1SPACh. 15 - Prob. 2SPACh. 15 - Prob. 3SPACh. 15 - Prob. 4SPACh. 15 - Prob. 5SPACh. 15 - Prob. 6SPACh. 15 - Prob. 7SPACh. 15 - Prob. 8SPACh. 15 - Prob. 9SPACh. 15 - Prob. 10SPACh. 15 - Prob. 11SPACh. 15 - Prob. 12APACh. 15 - Prob. 13APACh. 15 - Prob. 14APACh. 15 - Prob. 15APACh. 15 - Prob. 16APACh. 15 - Prob. 17APACh. 15 - Prob. 18APACh. 15 - Prob. 19APACh. 15 - Prob. 20APACh. 15 - Prob. 21APACh. 15 - Prob. 22APACh. 15 - Prob. 23APACh. 15 - Prob. 24APACh. 15 - Prob. 25APACh. 15 - Prob. 26APACh. 15 - Prob. 27APACh. 15 - Prob. 28APA
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