Question

2. In January 2016, the US removed the export ban. So, now assume the US allows...

2. In January 2016, the US removed the export ban. So, now assume the US allows oil exports. Addi- tionally, assume that US exports of oil do not affect the world price of oil (i.e. the US is a small exporter of oil).

(a) Using an appropriate diagram, illustrate the US market for oil after removal of the ban.

(b) Show how Consumer Surplus (CS), Producer Surplus (PS) and US welfare have changed because of the export ban removal.

(c) Which groups in the US economy would support removal of the export ban and which groups would oppose its removal?

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
Assume that the demand and supply curves for coffee in the US are: Demand: P =...
Assume that the demand and supply curves for coffee in the US are: Demand: P = 350 – QD Supply: P = 20 + 0.1QS a) Determine the equilibrium prices and quantities if there is no international trade? b) Determine the equilibrium quantities (supply and demand) for the US if the nation can trade freely with the rest of the world at a price of 60? In another word, find out the quantity demanded and supplied in the US at...
Assume now that NZ engages in free trade but that AUS sets an export subsidy equal...
Assume now that NZ engages in free trade but that AUS sets an export subsidy equal to s = $0.5 per unit NZ: Demand: Qd = 100 - 20p Supply: Qs = -20 + 20p AUS: Demand: Qd* = 70 - 20p* Supply: Qs* = -10 + 20p* (a) Calculate the new world equilibrium price and the internal prices in the two countries. (b) Calculate NZ demand and supply, AUS demand and supply, and NZ imports and AUS exports in...
Question 1: While the U.S. both imports and exports computers, we import a much larger amount...
Question 1: While the U.S. both imports and exports computers, we import a much larger amount than we export. For this question, assume that the U.S. either imports completely or exports completely and that the trade balance reflects something fundamental about our resources and production costs relative to the rest of the world. Use a detailed diagram to show supply and demand in the market for computers in U.S. Label all areas in the graph in order to answer the...
Assume that consumers view tax preparation services as undifferentiated among producers, and that there are hundreds...
Assume that consumers view tax preparation services as undifferentiated among producers, and that there are hundreds of companies offering tax preparation in a given market. The current market equilibrium price is $120. Jojo’s Tax Service has a daily, short-run total cost given by TC = 100 + 4Q2. Answer the following questions: How many tax returns should Jojo prepare each day if her goal is to maximize profits? How much will she earn in profit each day? A perfectly competitive...
Assume that consumers view tax preparation services as undifferentiated among producers, and that there are hundreds...
Assume that consumers view tax preparation services as undifferentiated among producers, and that there are hundreds of companies offering tax preparation in a given market. The current market equilibrium price is $120. Jojo’s Tax Service has a daily, short-run total cost given by TC = 100 + 4Q2. Answer the following questions: How many tax returns should Jojo prepare each day if her goal is to maximize profits? How much will she earn in profit each day? A perfectly competitive...
19. The method we used to determine whether a country/society was better or worse off after...
19. The method we used to determine whether a country/society was better or worse off after a change in policy or a movement towards free trade (from autarky) was a. by calculating the net effects b. by examining the total surplus c. by considering the deadweight loss triangles d. all of the above e. none of the above (not including d) ------------------------------------------------------------------------------------------------------------------------- 20. Consider the small Home country doing tariffs under PC. Which of the following statements is true? a....
Question: summarize what you have read and how you believe (based on what we've studied so...
Question: summarize what you have read and how you believe (based on what we've studied so far) that topic should be approached from a law and policy perspective. Introduction The U.S.-Cuba relationship has been plagued by distrust and antagonism since 1959, the year Fidel Castro overthrew a U.S.-backed regime in Havana and established a socialist state allied with the Soviet Union. During the half century that followed, successive U.S. administrations pursued policies intended to isolate the island country economically and...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT