Macroeconomics
13th Edition
ISBN: 9780134744452
Author: PARKIN, Michael
Publisher: Pearson,
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Chapter 15, Problem 5SPA
To determine
Identify the impact of a tariff on price, quantity brought, and quantity demanded in Country U.
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The figure below shows the U.S. market for imported wine. For simplicity, we
consider export supply curves to be flat. Chilean wine is available for $480 per
barrel and French wine is available for $420 per barrel.
Price per barrel
$500
$480
$420
10
a.
$480
b. $560
C.
$500
d. $420
15
a
Chilean price
French price
US demand for imported wine
Quantity
(millions of barrels per year)
Suppose the United States has a tariff of $80 per barrel on imported wine.
Then, the United States joins a free-trade area with Chile. At what price per
barrel will the imported wines be purchased by the U.S. consumers?
Finland imports shoes into its country; they are a price taker in this market. Suppose the world price of shoes is $40. If Finland
imposes a $10 tariff on shoes, what would be the domestic price of shoes 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.
The quantity bought will increase and the price will be $30.
a
The quantity bought will fall and the price will be $30.
The quantity bought will fall and the price will be $50.
The quantity bought will increase and the price will be $50.
What would likely be the effect of a country
significantly lowering tariffs on agricultural
imports?
A. Domestic agricultural prices increase and
local production decreases.
B. Domestic agricultural prices decrease and
local production increases.
C. Domestic agricultural prices decrease and
local production decreases.
D. Domestic agricultural prices and local
production remain unchanged.
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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