A ban on imports, a tariff, or a quota raise the price to domestic consumers. This means that consumers will buy less of the product at a higher price. The loss associated with this is called barrier associated loss production associated loss deadweight loss trade loss
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- Consider the market for slug repellant. This good can be produced in the United States or abroad. Assume U.S. consumers wish to buy the least expensive slug repellant possible. Price Quantity demanded $6 13000 $7 12000 $8 11000 $9 10000 $10 9000 $11 8000 Quantity supplied domestically 2000 4000 6000 8000 9000 10000 Quantity supplied by importers if trade is allowed 5000 5000 5000 5000 5000 5000 If international trade is allowed, what is the equilibrium price?What are the factors affecting the demand for air travel within the United States?If the US government reduces the tariff on imported coffee will this affect the supply or the demand for coffee
- The demand and supply for houses (in millions of houses per year) is shown below. If the worldwide price of houses is $350,000, the international housing market would: Quantity Demanded Quantity Supplied Price per Home 350,000 340,000 330,000 320,000 U.S. Residents 10 20 40 60 Rest of World 15 25 45 65 Experience a shortage Experience a surplus Be at equilibrium Worldwide Market Price per Home 350,000 340,000 330.000 320,000 U.S. Residents 30 25 20 15 Rest of Worldwide World Market 40 35 30 25The 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): -1 13 12 11 10 A 9 8G 7 2 Price 1. 0 0 2 US Market for Yoplait (Y) Supply of Yoplait 5 6 7 Loss of LQM. Gain of LQM. Loss of KLMR. Demand for Yoplait Gain of KLMR. Yoplak 9 10 11 12 13 14 12 Price 11 10 A US Market for Dannon (D) 2 3 4 5 7 Supply of Dannon Refer to the above graph. At the price of $6 for D, intra-industry trade leads to which of the following for the United States: 8 Demand for Dannon Dannon 9 10 11 12 13This assignment is to test your understanding of Demand & Supply. Each question should be answered in your own words accompanied by a diagram showing what is happening to demand & supply. Please use graph paper for your diagrams. In September of 2006 Hurricane Chantel hit Florida and caused over a billion dollars in damage to homes and businesses, infrastructure, etc. At the same time the province of BC was recovering from a forest fire season that destroyed millions of hectares of forest. Explain the impact these natural disasters had on the demand for, supply of, and price of lumber in North America. Using the information below prepare a graph to clarify your answer starting at equilibrium. The change in quantity of supply or demand is 1,000,000 board feet for each of the aforementioned shocks. What is the new equilibrium?
- Price 0 E B D ₂ 52 S₁ 1 QuantityCountry C imports 80,000 metric tons of steel from Country U and produces domestically80,000 metric tons per year. The world price of steel is $500 per metric ton. Assuming linearschedules, research analysts estimated the price elasticity of domestic supply to be 0.50 and theprice elasticity of domestic demand to be -0.25 in the current market equilibrium. Country Cimposes an import duty of $150 per metric ton that caused the world price to fall by 10%. What are the terms of trade of the Country C steel market after the tariff was imposed? Explain the welfare effects of both countriesQUESTION 3 The U.S. Market for Computers sdamertie pply curre) Domestic price writh tanif Wadd price 2.000 D domestic de mandauve) 200 Quantity (thourande of unta) 100 120 I90 Referring to the above figure, how much revenue will the US government collect as a result of the tariff on computers? a. $168 millisn Ob. $76 million OC $28 million d. $280,000
- part a The effect of a tariff on the quantity demanded of an imported commodity: a will be higher the greater the elasticity of its demand. b will be lower the greater the elasticity of its demand. c does not depend on its elasticity of demand. d will only depend on its elasticity of supply. part b: In a market supplied by both domestic and foreign producers the government establishes a quota on imports at a level below current imports. The quantity sold by domestic producers will ______________ and the equilibrium quantity in the market overall will ______________. a not change; not change b increase; decrease c decrease; decrease d decrease; not change Part C: The picture attachedi dont know where the boxes go or the price mark. the cosumer surplus too.Lilliput imports rope from Brobdingnag, where ropeproducers are subsidized by the government becauseof their great political clout. The most efficientpolicy from the standpoint of Lilliput is toa. continue trading at the subsidized price.b. place a tariff on rope imports to offset thesubsidy.c. give a similar subsidy to the rope producers ofLilliput.d. stop trading with Brobdingnag.
