Question

If U.S. Congress imposed an import fee on crude oil, what would happen to the following...

If U.S. Congress imposed an import fee on crude oil, what would happen to the following and explain?

a) Would the world demand curve for crude oil: Shift to the right, shift to the left, or stay the same

b) World supply curve for crude oil: Shift to the right, shift to the left, or stay the same

c) U.S. demand curve for crude oil: Shift to the right, shift to the left, or stay the same

d) U.S. supply curve for crude oil: Shift to the right, shift to the left, or stay the same

e) World crude oil prices: rise, fall, change little

f) U.S. crude oil prices: rise, fall, change little

g) World oil consumption: rise, fall, change little

h) U.S. oil consumption; rise, fall, change little

i) U.S. oil imports; rise, fall, change little

Homework Answers

Answer #1

Import fee on crude oil will increase domestic price of crude oil, lowering its domestic quantity demanded and raising its domestic quantity produced, thus lowering imports. Therefore

(a) World demand for crude oil - Shift to left (Since US import demand will fall, world demand will fall)

(b) World supply for crude oil - Stay the same

(c) US demand for crude oil - Shift to left (Since US domestic quantity demanded will fall)

(d) US supply of crude oil - Shift to right (Since US domestic quantity supplied will rise)

(e) World crude price - Fall (since world demand for crude will fall)

(f) US crude oil price - Rise

(g) World oil consumption - Fall

(h) US oil consumption - Fall

(i) US oil imports - Fall

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
If Congress ended the subsidy for ethanol-based fuels, what would happen to the following and explain?...
If Congress ended the subsidy for ethanol-based fuels, what would happen to the following and explain? a) Would the world demand curve for crude oil: Shift to the right, shift to the left, or stay the same b) World supply curve for crude oil: Shift to the right, shift to the left, or stay the same c) U.S. demand curve for crude oil: Shift to the right, shift to the left, or stay the same d) U.S. supply curve for...
If Europe experienced a severely cold winter, what would happen to the following and explain? a)...
If Europe experienced a severely cold winter, what would happen to the following and explain? a) Would the world demand curve for natural gas: Shift to the right, shift to the left, or stay the same b) World supply curve for natural gas: Shift to the right, shift to the left, or stay the same c) U.S. demand curve for natural gasl: Shift to the right, shift to the left, or stay the same d) U.S. supply curve for natural...
2. Answer the following two questions by filling in the table below and explaining your answers....
2. Answer the following two questions by filling in the table below and explaining your answers. You may draw graphs to assist you if you like, but you must still check the correct cell in the table get credit for your answers. Assume that the demand and supply curves for a specific country represent domestic supply and demand and do not count imports as part of supply or exports as part of demand. a. New policies for international trade by...
Recall exercise 2 from Chapter 5 in which a country imposes an import fee on the...
Recall exercise 2 from Chapter 5 in which a country imposes an import fee on the crude oil it imports. Assume that prior to the imposition of the import fee, the country annually consumed 900 million short tons of coal, all domestically mined, at a price of $66 per short ton. How would the CBA of the import fee change if, after imposition of the import fee, the following circumstances are assumed to result from energy consumers switching from crude...
1. The U.S. $ appreciates against the Canadian $, the U.S. experience: a) an increase in...
1. The U.S. $ appreciates against the Canadian $, the U.S. experience: a) an increase in U.S. exports and a shift right of the U.S. AD curve b) an increase in U.S. exports and a shift left of the U.S. AD curve c) a decrease in U.S. exports and a shift right of the U.S. AD curve d) a decrease in U.S. exports and a shift left of the U.S. AD curve 2. The economy is in a recession: a)...
What would happen to the equilibrium price and quantity of crude oil if Saudi Arabia increased...
What would happen to the equilibrium price and quantity of crude oil if Saudi Arabia increased its production of oil? describe and show with supply or demand diagram.
If countries that imported from the United States went into recession, we expect that U.S. net...
If countries that imported from the United States went into recession, we expect that U.S. net exports would _________ rise, making the aggregate demand shift right fall, making aggregate supply shift right fall, making aggregate demand shift left rise, making aggregate supply shift left
The belief by most economists that real and nominal variables are essentially determined separately in the...
The belief by most economists that real and nominal variables are essentially determined separately in the long run is characteristic of the ________ model. A.Keynesian B. aggregate supply C. classical D. aggregate demand Suppose the economy is in long-run equilibrium. Senator A succeeds in getting taxes lowered. At the same time, Senator B succeeds in getting major restrictions on logging enacted. In the short run A.the price level will rise, and real GDP might rise, fall, or stay the same....
a. Monetary Policy involves changing taxes and government spending/ the design of currency/ exports/ the money...
a. Monetary Policy involves changing taxes and government spending/ the design of currency/ exports/ the money supply.   In the United States, Monetary Policy is implemented by the Federal Reserve/ President and Congress/ Secretary of the Treasury/ states. b. Contractionary Monetary Policy/ Lower prices/ Expansionary MonetaryPolicy/ Larger coins can be used to address a Recessionary Gap; while Expansionary MonetaryPolicy/ smaller coins/ Contractionary Monetary Policy/ higher prices can be used to address an Inflationary Gap. c.  To enact Contractionary Monetary Policy, the central bank...
The components of spending are C, I, G and NX. G stands for government purchases which...
The components of spending are C, I, G and NX. G stands for government purchases which do NOT include transfer payments. Which of the following is NOT a transfer payment. government pays the salary of military troops social security payments to retirees unemployment benefits to workers who have lost their jobs payments to low income individuals to support food purchases (colloquially known as food stamps) Which of the following would increase consumption spending AND shift the aggregate demand curve to...