Suppose the market for apples is characterized by the following set of equations: Qs = 100 + 20P (domestic supply function) QD = 500 – 30P (domestic demand function) PW = 4 (world price) a. Given the world price of 4, how much would be the quantity supplied and quantity demanded for apples? Solve for the aforementioned and illustrate this market. Properly label everything.
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- Recently, China placed tariffs on the importation of US soybeans. Assume that the domestic market for soybeans in China is described by the following equations: Demand: P = 115 – 1/15Q Supply: P = 55 + 1/15Q Where P is Yuan per bushel of soybeans and Q is 10 million bushels per year. The world price for soybeans is ¥65/bushel. Graph the soybean market in China showing equilibrium both with no barriers to trade and with a ¥15/bushel tariff. Be sure to fully and clearly label the graph including the Domestic Demand curve, Domestic Supply curve, the World Price, and the Price with tariffs. 4. Who are the greatest benefactors of China’s tariff on US soybeans?China placed tariffs on the importation of US soybeans. Assume that the domestic market for soybeans in China is described by the following equations: Demand: P = 11.5 – Q Supply: P = 5.5 + Q Price is in 10 Yuan (¥) per bushel of soybeans and the units for Quantity are 100 million bushels per year. This is to make graphing simpler. This does NOT mean that the price is 10 and quantity is 100. Rather it means that if the price was 40¥ and the quantity was 7,500,000,000 bushels, this would plot as 4 and 7.5 respectively. The world price for soybeans is ¥65/bushel (this would graph as a horizontal line at 6.5). Graph the soybean market in China showing equilibrium both with no barriers to trade and with a ¥15/bushel tariff. Be sure to fully and clearly label the graph including: Domestic Demand curve (D), Domestic Supply curve (S), the World Price (WP), and the Price with tariffs (PT), along with the quantities imported both with and without the tariff. Based on your graph, what…Home’s domestic demand and supply curves for skateboards are D = 500 - 10P and S = 300 + 20P and Foreign’s domestic demand and supply curves for the same type of skateboard are D = 1000 – 10P and S = 200 + 40P. a. Find the autarky price and quantity for each country. If the countries trade, which country will export skateboards? b. Derive algebraically the import demand and export supply functions. Find the price and the volume of trade with free trade. c. Please show graphically the world equilibrium, equilibrium at Home, and at Foreign under free trade. d. Now the importer country imposes a tariff of $4 per skateboard. i. Determine and show graphically the effects.
- b. The United States currently imports all of its coffee. The annual demand for coffee by U.S. consumers is given by the demand curve Q = 250 – 10P, where Q is quantity (in millions of pounds) and P is the market price per pound of coffee. World producers can harvest and ship coffee to U.S. distributors at a constant marginal (= average) cost of $8 per pound. U.S. distributors can in turn distribute coffee for a constant $2 per pound. The U.S. coffee market is competitive. Congress is considering a tariff on coffee imports of $2 per pound. i. If there is no tariff, how much do consumers pay for a pound of coffee? What is the quantity demanded?ii. If the tariff is imposed, how much will consumers pay for a pound of coffee? What is the quantity demanded?Zenobia is a small country that takes the world price of barley as given. Its domestic supply and demand for barley are given by: D = 60 – 4P S = 4P – 12 7 euro for every bushel of barley Suppose the Zenobian government applies an import quota that limits imports to 12 bushels. a) Determine the quantity demanded, quantity supplied, and new domestic price with the quota. b) Calculate the quota rent. c) Assuming that quota licenses are allocated to domestic producers, what is the net effect of the quota on Zenobia's welfare? d) Assuming that quota rents are earned by foreign exporters, what is the net effect of the quota on Zenobia's welfare?Consider a large country with a domestic demand characterized by the inverse demand function P=1000-Q. Domestic supply is represented by the equation P=400+Q. Finally, the world price of the good is 900. You know that an export tariff pass-through is 10%, meaning that foreign price decreases by 10% value of an export tariff t; more generally, 10% of any change in the domestic price is absorbed by the world market. a) Draw a diagram of a free trade case, label imports, consumer and producer surplus. b) Now you want to introduce export quota restrictions g. Calculate the value of the optimal export quota q, which maximizes domestic welfare. Illustrate CS, PS, QR, and DWL on your graph. Calculate their numerical values.
- Consider a large country with a domestic demand characterized by the inverse demand function P=1000-Q. Domestic supply is represented by the equation P=400+Q. Finally, the world price of the good is 900. You know that an export tariff pass-through is 10%, meaning that foreign price decreases by 10% value of an export tariff t; more generally, 10% of any change in the domestic price is absorbed by the world market. a) Draw a diagram of a free trade case, label imports, consumer and producer surplus. b) Now you want to introduce export quota restrictions q. Calculate the value of the optimal export quota q, which maximizes domestic welfare. Illustrate CS, PS, QR, and DWL on your graph. Calculate their numerical values. c) Would you prefer to use an export quota or an export tariff? Explain why. Why do we see both instruments of trade policy being used? What are the advantages and disadvantages of export quotas compared to export tariffs?The equation for the demand curve for writing paper in Belgium is QD=350 (P/2) [or P = 700 - 2QD] The equation for the supply curve for writing paper in Belgium is - 200+ 5P[or P = 40 + Qs/5] Qs == 1. What are the equilibrium price and quantity if there is no international trade? P= 613 输入答案 ; Q= 输入答案 2. What are the equilibrium quantities for Belgium if the nation can trade freely with the rest of the world at a price of 120? Qd= 输入答案 ; Qs= 输入答案 I 3. What is the net national gain or loss for Belgium when it shifts from no trade to free trade? (with the "one dollar, one vote" assumption) Net Gain/Loss by 输入答案The graph to the right shows the supply and demand for Japanese-made automobiles in the United States. Assume that Japanese-made and U.S.-made automobiles are of the same quality and are considered to be perfect substitutes. Suppose that the U.S. government imposes a tariff on Japanese-made automobiles. 1.) Using the line drawing tool, show the effect on the market for Japanese-made automobiles. Properly label your line. 2.) Using the point drawing tool, identify the new equilibrium price and quantity. Label it 'E₂'. Carefully follow the instructions above, and only draw the required objects. As a result of the tariff, the price of Japanese-made cars rises and the quantity falls. In the market for American-made cars, there will be and thus the price of American-made cars will equilibrium quantity will and the Price per Automobile ($) S Japanese-made Automobiles (thousands)
- Now suppose other countries produce cassava and Côte d'Ivoire can import cassava at the world price (Pw) which is lower than the autarky (e. economic independence or self-sufficiency) price (Pa). Figure 2 below depicts the demand and supply curves for cassava in Côte d'Ivoire with imports. Quantity is represented on horizontal axis and price is on the vertical axis. Carefully examine Figure 2 and answer questions 8-11 that follow: Note: Qa is the Autarky quantity, Qs is the quantity of cassava supplied by producers in Côte d'Ivoire, and Qd is the quantity of cassava demanded by consumers in Côte d'Ivoire after import Figure 2: Demand and Supply of Cassava in Côte d'Ivoire with Imports Price ($) Pa Oa 9b OC Od OF or Pw 0 a Qs U d la la D₂ Quantity (kg) Question 8: Using the letters (i.e. a, b, c, d, e, f) from Figure 2, which area represents the producer surplus if Côte d'ivoire imports cassava at the world price (Pw)? Select all that apply.You are provided with the following information about the Canadian turkey market:1. The world price of turkey is $5.2. The Canadian turkey market is currently (before the new trade agreement) protected by a tariffrate quota (TRQ) of the following format:a) the in-quota tariff is $1 per unitb) the import quota volume is 100 unitsc) the over-quota tariff is $10 per unit.3. An excess demand (ED) (for imports) function for turkey has been estimated as? = 28 − 0.14?. Notes: Canada is a small importing country in the world market for turkeys. Answer the question below: The Canadian government is considering reducing the in-quota tariff to $0.50. Modify the diagram for this market, and solve for the Canadian turkey price and the volume of imports. Label all relevant functions, axes, etc.Suppose the domestic supply (QS) and demand (QD) for skateboards in the United States is represented by the following set of equations: QS = -300 +2P QD = 1200 - 4P Calculate the change in producer surplus when the United States moves from autarky to free trade and, as a result, decides to import skateboards from the rest of the world at a per unit price of $200. -$7,500.00. -$3,375. +$2,800.50.