Macroeconomics
13th Edition
ISBN: 9780134744452
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 15, Problem 7SPA
To determine
Illustrate the effect of the tariff on the graph of the market for roses and identify the government revenue.
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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.
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?
The figure provided shows the Canadian domestic market for calculators.
Price of
calculators
$450
40
30
20
25
10
S
world price with tariff
world
price
Fore
50 100 200 300 400 500 600 700 800 900
Quantity of calculators
If the world price is $5 and an import quota of 600 is imposed, the price after the quota, in numerals, is
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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- ЕОC 10.05 Japan imports crayons into its country; they are a price taker in this market. Suppose the world price of crayons is $5. If Japan imposes a $1 tariff on crayons, what would be the domestic price of crayons 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. a The quantity bought will increase and the price will be $6. b The quantity bought will fall and the price will be $6. The quantity bought will fall and the price will be $4. d. The quantity bought will increase and the price will be $4.arrow_forwardх 0 150 $1500 $625 $2800 $865 Price of Calculators $27 12 7 2 300 400 Domestic Supply Domestic Demand World Price Quantity of Calculators The figure above shows the domestic market for calculators in Haiti. What is the change in total surplus in Haiti because of trade?arrow_forwardThe nation of Theopolis recenty put a tariff on the importation of washing machines. Which of the following statements is true based on this information? (a) This tariff harms consumers in Theopolis who buy washing machines (b) This tariff benefts the producers of washing machines in Theopolis (c) This tarif hurts the producers of washing machines in other countries that export to Theopolis (d) The tariff will increase overall weltare in Theopolis Explain all the false answers alsoarrow_forward
- PRICE (Dollars per ton) 1280 Domestic Demand 1220 1160 - 1100 1040 - 980 920 860 800 740 680 0 25 50 Domestic Supply P. W + + 75 100 125 150 175 200 225 250 QUANTITY (Tons of maize) 人。 CS Use the following graph to show the effects of the $120 tariff. ☆ PS Because Jordan participates in international trade in the market for maize, it will import Now suppose the Jordanian government decides to impose a tariff of $120 on each imported ton of maize. Under the tarif consumers pay for a ton of maize becomes $ and Jordan will import tons of maize. tons of maize. Use the black line (plus symbol) to indicate the world price plus the tariff. Then, use the green points (triangle symbols) to with the tariff and the purple triangle (diamond symbols) to show the producer surplus with the tariff. Lastly, use the oran MacBook Proarrow_forwardFigure 7-2 Price (dollars per pound) $3.00 2.50 1.75 0.50 12 18 26 38 45 U.S. Supply U.S. Demand Quantity of coffee (millions of pounds) Suppose the U.S. government imposes a $0.75 per pound tariff on coffee imports. Figure 7-2 shows the impact of this tariff. Refer to Figure 7-2. Without the tariff in place, the United States consumes 12 million pounds of coffee. Pw+tariff World price (P 26 million pounds of coffee. 33 million pounds of coffee. 45 million pounds of coffee.arrow_forwardPrice (dollars per battery) 20 18 16 14 12 10 8 0 A Sus World price + tariff World price Dus 100 300 500 700 900 1,100 1,300 Quantity (thousands of batteries) The above figure shows the U.S. market for replacement cell phone batteries. Suppose the U.S. government imposes the tariff illustrated in the figure. The tariff is equal to and the price U.S. consumers pay compared to the price paid when there was free trade.arrow_forward
- The graph to the right shows the market for water bottles in Thirsty-country with free trade (S1), with tariffs (S2), and with domestic firms only (S3). Shade in the area to show the amount of the tariff collected. Drund irgok: 15 Tritf6-45-15 f 15x (205) Quanty thousandarrow_forwardAssume 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…arrow_forward8 Depict on graph and briefly explain effects of import tariff (economic consequences for the importing country): Change in consumer surplus (ΔCS); Change in producer surplus (ΔPS); Government revenue; Production distortion, consumption distortion, and total deadweight loss (DWL).arrow_forward
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