Question

Suppose the world price for a good is 40 and the domestic demand-and-supply curves are given...

Suppose the world price for a good is 40 and the domestic demand-and-supply curves are given by the following equations:

Demand: P = 80 – 2Q

Supply: P = 5 + 3Q

a.   How much is consumed?

b.   How much is produced at home?

c.   What are the values of consumer and producer surplus?

d.   If a tariff of 10 percent is imposed, by how much do consumption and
domestic production change?

e.   What is the change in consumer and producer surplus?

f.    How much revenue does the government earn from the tariff?

g.   What is the net national cost of the tariff?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Suppose that the world price for a good is 120 and the domestic demand-and-supply curves are...
Suppose that the world price for a good is 120 and the domestic demand-and-supply curves are given by the following equations: Demand: P = 200 – 8Q Supply: P = 20 + 10Q       a. How much is domestic consumption?       b. How much is domestic production?       c. Calculate the values of consumer and producer surplus.       d. If a tariff of 30% is imposed, how much do consumption and domestic production change?       e. What is the change...
Given the previous questions with a world price of 34, and the domestic demand and supply...
Given the previous questions with a world price of 34, and the domestic demand and supply curves given by the following equations: D: P= 80 - 2Q S: P= 10 + 3Q Suppose the government imposes a tariff equal to 6 which increases the price in the domestic market to 40. Given the tariff and new price to consumers, domestic consumers will now import ______ units of the good, the government will collect ______ in tariff revenue, and the total...
4. Suppose the domestic supply and demand curves for petroleum in the U.S. are, Qs =...
4. Suppose the domestic supply and demand curves for petroleum in the U.S. are, Qs = 10P - 300 Qd = 3000 - 20P Let the world trade price be $50 per barrel. 1) What is the equilibrium quantity of imports? 2) Suppose a specific tariff of $10 per barrel is imposed. Calculate Consumer surplus, producer surplus, and tariff revenue. 3) Suppose the government imposes an import quota of 1200 units of barrels. Find the trading price for petroleum.
Suppose the world price for shoes is $32 per pair. Domestic demand and domestic supply are...
Suppose the world price for shoes is $32 per pair. Domestic demand and domestic supply are determined by the following equations: Domestic Demand: p = 120 - 2q Domestic Supply: p = 20 + 3q where p and q represent price and quantity, respectively 9. What is the net loss to the domestic economy if the above import quota of 30 pairs of shoes is implemented under the arrangement of Voluntary Export Restraint (VER)? A) $60 B) $120 C) $360...
Suppose that domestic demand in the market for good X is given by the equation Qd...
Suppose that domestic demand in the market for good X is given by the equation Qd = 60 - P. And that domestic supply in the market for good X is given by the equation Qs = 2P Suppose the world price is $10 and the country allows free trade. What is consumer surplus with free trade? Suppose the government imposes a $5 tariff on imports. What is the gain to suppliers from this tariff? What is the gain to...
2. Draw demand and supply curves to find the world price and tariff price of your...
2. Draw demand and supply curves to find the world price and tariff price of your goods. Suppose at the world price of $13; 10,500 units are produced domestically, and 16,700 units are consumed. When a tariff of $2 per unit causes the price to rise to $15, domestic production rises to 12,000 units, and domestic consumption falls to 14,500 units. 1) Construct demand and supply functions.
Tariffs and Quotas      Small Country      A. Effects of tariffs on         - Domestic Price...
Tariffs and Quotas      Small Country      A. Effects of tariffs on         - Domestic Price         - Domestic production         - Imports         - Consumer and producer surplus         - Production and consumption distortion         - Government revenue      B. Quotas         - Effect on export supply and domestic price         - Effects on consumer and producer surplus,           production and consumption distortion         - The quota rent         - Methods of allocating the quota rent      C. Large...
9.21) Suppose the domestic demand equation for a widget is given by Q = 80 –...
9.21) Suppose the domestic demand equation for a widget is given by Q = 80 – 2P and the domestic supply equation is Q = -10 + P. a) Assume there is free trade and the world price of the widget is 20 liras. How many units of this widget will be imported? b) Calculate the change in the consumer supply and producer supply if the government applies a 5 liras per unit tariff on the product. What will be...
Suppose the weekly demand for a certain good in thousands of units, is given by the...
Suppose the weekly demand for a certain good in thousands of units, is given by the equation P = 35 - Q, and the weekly supply curve of the good by the equation P = 15 + Q where P is the price in dollars. Finally, suppose a per-unit tax of $6, to be collected from sellers is imposed in this market. Complete the following questions. Note: If necessary round your answers to two decimal places. a) Graph the weekly...
Suppose the domestic demand for television sets is given by the following demand equation: Qd =...
Suppose the domestic demand for television sets is given by the following demand equation: Qd = 2400- 10P, where P is the price of television sets in dollars. The domestic supply of television sets is: Qs =2P. Finally assume that television sets can be imported at the world price of $160. Suppose the government bans the import of television sets. How much would domestic consumer surplus and domestic producer surplus change as a result of this policy and what would...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT