Question 21 Suppose supply is given by P = 2Q and demand is given by P = 1000 - 2Q. What will happen in this economy if the world price is 400? An export of 100 units An import of 100 units An import of 200 units An export of 200 units

Question 21 Suppose supply is given by P = 2Q and demand is given by P = 1000 - 2Q. What will happen in this economy if the world price is 400? An export of 100 units An import of 100 units An import of 200 units An export of 200 units

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter34: Globalization And Protectionism

Section: Chapter Questions

Problem 1SCQ: Explain how a tariff reduction causes an Increase in the equilibrium quantity of imports and a...

See similar textbooks

Related questions

Q: QUESTION 6 The following figure depicts the supply and demand schedules of calculators for Greece, a…

A: We have given that France can supply calculators to Greece at $30 per unit while Germany can supply…

Q: (Figure: Market for Engines) According to the figure, if there is international trade in this…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: A semiconductor is a key component in your laptop, cell phone, and iPod. The table provides…

A: The capacity of an economy to generate a specific product or service at a lower opportunity cost…

Q: Mexico is an importer of rice. The world price of a kilo of rice is $10. Mexico imposes a…

A: The impact of tariffs and exchange boundaries on organizations, customers and the public authority…

Q: Suppose there is an increase in the demand of the imported commodity subject to a given import…

A: Here, it is given that the economy has import quota and the demand for the imported commodity has…

Q: Consider the market for sneakers. The domestic demand equation is given by Q = 100 – 5P, and the…

Q: Suppose the domestic supply (Qs) and demand (Qp) for skateboards in the United States is represented…

A: We are going to discuss the impact of imports on the domestic market.

Q: Describe the potential advantages to the economy if the government offers an export subsidy

A: A subsidy refers to benefits provided by the government to firms or households. These benefits are…

Q: The following graph shows the domestic supply of and demand for wheat in Kenya. The world price (w)…

A: International Trade occurs when goods and services are transported over country borders for sale in…

Q: Example 9.5 describes the effects of the sugar quota. The supply equation is Qs = -7.48 + 0.84P, and…

A: The given information: Qs=-7.48+0.84PQd=26.7-0.23P Import limited to 5.3 billion Domestic price is…

Q: Qd = 100 - 0.5P Qs = P - 50 The world price (which will not be affected by anything that we do)…

Q: The following graph shows the domestic supply of and demand for wheat in New Zealand. The world…

A: A tariff is a tax imposed by a government of a country or of a supranational union on imports or…

Q: Consider a small country where the domestic market for sandals is described by the following demand…

A: Equilibrium is achieved at the output level where Qs equals Qd.

Q: Consider a small country where the domestic market for sandals is described by the following demand…

A: International trade: International trade can be defined as the transfer of products, and services…

Q: When China's clothing industry expands, the increase in world supply lowers the world price of…

A: (Since you have asked many questions, we will solve the first one for you. If you want any specific…

Q: Consider a small country where the domestic market for sandals is described by the following demand…

A: Gains from trade are the net benefits to economic agents from allowing them to engage in more…

Q: If the world price of a good is lower than its domestic equilibrium price, the country will:

A: when the domestic price of the good is higher than world price, opening of free trade will result in…

Q: Chart 1 below illustrates the tennis shoe market in Canada. 5-1- If Canada did not trade with other…

A: In the production process, the conditions and fluctuations that happen between demand and also the…

Q: Consider the market for sneakers. The domestic demand equation is given by ?=20−0.6?, and the…

Q: For each of the following statements, indicate whether it is true or false for a country that opens…

A: The elasticity of demand refers to the degree of responsiveness in demand when there is a change in…

Q: Domestic demand for natural gas is characterized by the equation P=350−5Q, domestic supply is…

A: (Q)Domestic demand for natural gas is characterized by the equation P=350−5Q, domestic supply is…

Q: Suppose supply is given by P = 2Q and demand is given by P = 1000 – 2Q. What will happen in this…

A: Supply : P=2Q Demand : P=1000-2Q Equilibrium price : Demand=Supply 2Q=1000-2Q 4Q=1000 Q=250 P=500…

Q: Suppose that the world price of bananas is 18 U.S. cents a pound and that when Australia does not…

A: Introduction International trade is indeed the transfer of capital, commodities, and services…

Q: At a world price of $60, will the domestic quantity supplied be greater than, less than, or equal to…

A: In economics, demand is the quantity of a good that consumers are willing and able to purchase at…

Q: Belgium is a small country which produces and consumes gooseberries. The quantity demand of…

A: Given:P=rs.15Qd=120-4PQd=120-4(15)Qd=120-60Qd=60

Q: Discuss the price elasticity of demand and the price elasticity of supply of goods that have low…

A: The sensitivity of a product or service to a change in its current price is measured by price…

Q: The following graph shows the domestic supply of and demand for maize in Bangladesh. The world price…

A: Given information: * The world price (Pw ) of maize= $255 per ton * Bangladesh will import 300…

Q: Let us consider the case of Good X in Malaysia. The demand and supply functions for Good X in…

A: QD = 361 - 2P QS = 23 + P World price = 70 Quota = 80

Q: Suppose Home is a large country whose supply and demand curves are given by the left of the…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: The following graph shows the domestic supply of and demand for maize in Guatemala. The world price…

A: When world price is less than equilibrium price, quantity demanded exceeds quantity supplied and the…

Q: Finland imports shoes into its country; they are a price taker in this market. Suppose the world…

A: International trade refers to the exchange of goods and services between two or more nations for…

Q: If a country's domestic price of lumber is below the world price of lumber, the country will likely:…

A: Outflow of goods and services from one country to rest of world, is known as the export.

Q: = 5,000 + 0.2?. Suppose this economy opens to trade, and the world price of a car is $13,000. If the…

A: * SOLUTION :- Given that

Q: Table 19.3 Domestic Supply and Demand for Tulips in the Netherlands Demand Supply Q P($) Q…

A: Given: To Find: If the world price of tulips is $1 and there are no trade restrictions, the…

Q: How do you think each of the following would affect the world price of oil -the Alaskan oil…

A: The completion of the Alaskan oil pipeline indicates that the transportation of oil from the source…

Q: The following graph shows the domestic supply of and demand for wheat in Bangladesh. The world price…

A: When the world price is set below the equilibrium, the country will import the good because there is…

Q: Given this information, what will be the world equilibrium price and quantity traded? Given that the…

A: International trade between countries refer to the export and import of goods and services between…

Q: (Figure: Market for Engines) According to the figure, if there is international trade in this…

A: In the given graph, it can be seen that domestic equilibrium price and quantity is $600 and 600…

Q: Do you think that the United States should phase out dependence on imported oil?

A: Do you think that the United States should phase out dependence on imported oil? Yes, I personally…

Q: When China's clothing industry expands, the increase in world supply lowers the world price of…

A: *Answer: When two countries trade with each other without any barriers, the countries are said to…

Q: Suppose that the current international price of wheat is $6 per bushel and that the United States is…

A: International trade refers to the exchange of goods and services between countries in the…

Q: A semiconductor is a key component in your laptop, cell phone, and iPod. The table provides…

A: Equilibrium point in the market is the point where the total surplus in the market is maximum. Total…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

The tsunamis that hit Japan in 2011 and India and Sri Lanka in 2004 were devastating, and their effects were felt for many years afterward. Natural disasters of this type as well as international events often result in severe disruptions to the supply ofallegations that meat inspectors and politicians had received bribes to overlook improper meat packing practices and allow sales of tainted food. How would the closing of export markets for a country’s beef products together with a fall in domestic sales of beef products and an increase in the domestic equilibrium quantity be reflected in supply-anddemand diagrams of that country’s foreign and domestic markets for beef in the short run?
19. Mention two possible situations when dealing with exports and imports.
Consider Figure 4.1. In the absence of trade, Mexico's producer surplus and consumer surplus respectively equal a) $240 and $240. b) $120 and $240. c) $180 and $180. d) $180 and $320. C
BTU, draw a diagram to illustrate how the develop- c. As a percent of total exports, rank the states in orda b. Calculate the growth in exports from 2002 to 2012 156 I PART 2 SUPPLY AND DEMAND C. Assuming natural gas prices in Europe are $6.00 per BTU, draw a diagram to illustrate how the develop- ment of a natural gas terminal in the United States will affect supply and demand in the natural gas market for Europe. Explain your findings. d. How will the exporting of natural gas from the United States to Europe affect consumers and pro0- ducers in both places? Note that most of the natural gas in Europe originates from Russia's state-owned natural gas company, Gazprom. Access the Discovering Data exercise for Chapter 5 online to answer the following 3. questions. a. Rank the states in order of exports to China. Rank in order of most to fewest exports. for each state. of most to least exports to Chino
With a 5 peso import tariff (compared to free trade) domestic producers in The Philippines gain an amount equivalent to area ACHD IAB DABE JHD P J Domestic Demand A B. 30 pesos Domestic Supply D F G H 25 pesos E 400 800 2100 2900 This graph illustrates the demand and supply curves for cell phones in The Philippines. With free trade, the retail price in the domestic market is 25 Philippine pesos. In this market, an import tariff would cause prices to go up by the full amount of the tariff. With a 5 peso import tariff (compared to free trade) domestic producers in The Philippines gain an amount equivalent to area
If the United States is currently importing 14 million barrels per day at a world price of $4.00 per unit (the entire amount consumed), what is the effect on imports of a tax equal to $8.00 per unit? Quantity of Barrels Supplied (Millions) Quantity of Barrels Demanded (Millions) 0 2 4 6 8 10 12 The amount of imports after the $8.00 per-unit tax is responses as a whole number.) ges Price per Barrel Get more help. $4 8 Using the table above, after the imposition of the $8.00 per-unit tax, the new quantity supplied is 4 million barrels and the new quantity demanded is 12 million barrels. (Enter your responses as a whole number.) 12 16 20 24 28 14 13 12 11 10 9 8 million barrels per day. Before the tax, domestic producers supplied 0 barrels of crude oil. They now supply million barrels Clear all (Enter your more less Check answer (e)
Currently Turkey is importing oil. Note that some oil is already being produced in Turkey. Assume Turkey is willing to decrease its energy dependecy, and willing to reduce oil imports. Assume either, demand, supply or world price change in a way that would turn Turkey into an oil exporting country. Show on a graph with Turkish demand Turkish supply and world price, how the change, can reduce the oil imports to zero. What factor may be behind the change you have chosen?
22. What quantity will Country B demand from the rest of the world at P=$5? 23. What quantity will Country B supply from the rest of the world at P=$12? 24. The international equilibrium price is $______. 25. What will be the quantity traded?
23. What happens to the relative price of a good as a result of trade if there is an increasing return to scale in the industry producing the good. Is it still converging to a price between domestic and foreign price of the good? Draw a graph to answer.
If a smaller country imports a good (electronics) from a larger country, is it beneficial for the smaller countryto impose quotas on the good coming from the larger country. Will this affect the consumers of electronics, the domestic producers of electronics and the government?
When the nation of Ectenia opens itself to world tradein coffee beans. the domestic price of coffee beansfalls. Which of the following describes the situation'•· Domestic prOduction of coffee rises, and Ectenoabecomes a coffee imoorter.b. Domestic prOduction of coffee rises, and Ecten iabecomes a coffee exporter.c. Domestic prOduction of coffee falls. and Ecteniabecomes a coffee importer.rl Domestic PrOduction of coffee falls. and Ecteniabecomes a coffee exporter.
18. What quantity will Country A supply to the rest of the world at P=$17? 19. What quantity will Country A supply to the rest of the world at P=$13? 20. What quantity will Country A demand from the rest of the world at P=$7? 21. What quantity will Country B demand from the rest of the world at P=$15?