Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 40, Problem 5DQ
To determine
The export supply curve, the import demand curve and their impact to determine the equilibrium world price.
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Students have asked these similar questions
Consider the effects of an import tariff in a small country using the graph
below for this question.
Domestic
Supply
Py + t
Pw
Domestic
Demand
50 75 100 125 150
Which area on the graph corresponds to wasted resources due to the
tariff?
O a. W
O b. X
O c. Y
O d. Z
Consider the effects of an import tariff in a small country using the graph
below.
P.
Domestic
Supply
Py +t
Pw
Domestic
Demand
40 45
75
95 105
Q
What are imports with the tariff?
O 30 units
O 45 units
O 50 units
O 65 units
5. Suppose that the comparative-cost ratios of two products-
baby formula and tuna fish-are as follows in the hypotheti-
cal nations of Canswicki and Tunata:
Canswicki: 1 can baby formula = 2 cans tuna fish
1 can baby formula = 4 cans tuna fish
Tunata:
In what product should each nation specialize? Explain why
terms of trade of 1 can baby formula =
would be acceptable to both nations.
25 cans tuna fish
A small country is facing the following domestic supply curve of a product: S = 200 + 20P,
as well as the following domestic demand curve of a product: D = 400 - 20P. It can import
it at a world price of 10 per unit. In addition, each unit of production yields a marginal
social benefit of 10. The effect on welfare of an import tariff of 6 per unit is $.
O -420
O 500
O -480
O 420
O 320
-500
O :180
O -320
480
O 180
Chapter 40 Solutions
Economics (Irwin Economics)
Ch. 40.2 - Prob. 1QQCh. 40.2 - Prob. 2QQCh. 40.2 - Prob. 3QQCh. 40.2 - Prob. 4QQCh. 40 - Prob. 1DQCh. 40 - Prob. 2DQCh. 40 - Prob. 3DQCh. 40 - Prob. 4DQCh. 40 - Prob. 5DQCh. 40 - Prob. 6DQ
Ch. 40 - Prob. 7DQCh. 40 - Prob. 8DQCh. 40 - Prob. 9DQCh. 40 - Prob. 10DQCh. 40 - Prob. 11DQCh. 40 - Prob. 12DQCh. 40 - Prob. 13DQCh. 40 - Prob. 14DQCh. 40 - Prob. 1RQCh. 40 - Prob. 2RQCh. 40 - Prob. 3RQCh. 40 - Prob. 4RQCh. 40 - Prob. 5RQCh. 40 - Prob. 6RQCh. 40 - Prob. 7RQCh. 40 - Prob. 8RQCh. 40 - Prob. 9RQCh. 40 - Prob. 10RQCh. 40 - Prob. 11RQCh. 40 - Prob. 12RQCh. 40 - Prob. 13RQCh. 40 - Prob. 1PCh. 40 - Prob. 2PCh. 40 - Prob. 3PCh. 40 - Prob. 4P
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