Question

Suppose there are 2 countries that have the following supply and demand equations in autarky Country A Demand: Q = 800 - 2P S
c) If the importing country imposes a tariff equal to $10 per unit, what would be the new price in the importing country? d)
g) In the importing country what would be the total amount of government revenue collected as a result of the tariff? h) In t
0 0
Add a comment Improve this question Transcribed image text
Know the answer?
Add Answer to:
Suppose there are 2 countries that have the following supply and demand equations in autarky Country...
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. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Suppose there are 2 countries that have the following supply and demand equations in autarky Country...

    Suppose there are 2 countries that have the following supply and demand equations in autarky Country A Demand: Q = 800 - 2P Supply:    Q = 2P - 200 Country B Demand: Q = 400 - 2P Supply:    Q = 2P - 80 a) In the importing country what would be the total amount of government revenue collected as a result of the tariff? b) In the importing country what would be the change in national welfare from moving from...

  • HW Tariff: Large Country Case Suppose that there are only two trading countries: one importing country...

    HW Tariff: Large Country Case Suppose that there are only two trading countries: one importing country and one exporting country. The supply and demand curves for the two countries are shown below. Prr is the free trade equilibrium price. At that price, the excess demand by the importing country equals excess supply by the exporter. Welfare Effects of a Tariff: Large Country Case Importing Country Exporting Country P A D H b C C PT E PT C F G...

  • Question 1: Large country trade: Country A: demand: Q=400-P, supply: Q=P-20 Country B: demand: Q=300-P, supply:...

    Question 1: Large country trade: Country A: demand: Q=400-P, supply: Q=P-20 Country B: demand: Q=300-P, supply: Q=2P-30 Which country is importing? What is the global price under free trade? (10%) Compute the social surplus of each country. (5%) If the importing country impose a $20 tariff, what is the change in social surplus in each country? (15%)

  • Suppose a country was looking to replicate the results (quantity of imports) from question 7d (The...

    Suppose a country was looking to replicate the results (quantity of imports) from question 7d (The following equations represent a small country's home supply and demand curves for widgets: S = 200 + 2P and D = 1,000 – 2P. <7d> Suppose the Supply curve is now S = 0 + 2P, the world price after opening up to trade is 200 and the demand curve remains the same. If the country subsequently imposes a 20% tariff, calculate the change...

  • Roblem 2: Trade Policy. demand for cars in Home is q 30 - P and the supply of cars in Home is q -...

    E-H ONLY. THERE ARE THREE PICTURES updated figure 2 roblem 2: Trade Policy. demand for cars in Home is q 30 - P and the supply of cars in Home is q -P. The demand for cars in Foreign is q 20-P and the supply of cars in Foreign is q P. a) Calculate the equilibrium price and quantity in each country under isolation. b) Who is the importer of cars and who is the exporter? c) Write the import...

  • GS eans government surplus Problem IV. Demand and supply curves for two large countries are given...

    GS eans government surplus Problem IV. Demand and supply curves for two large countries are given by figure 1. Answer the following questions. (38 points) 1. Consider the autarky situation. (a) Calculate CS, PS, GS, and TS for both countries. (3 povints) 2. Now, suppose countries open to trade. (a) Which country imports and which exports? (0.5 point) (1) Derive import demand for importer and export supply for exporter. You can either draw both curves with appropriate labeling and placing...

  • Question 1: In a perfectly competitive market, the demand curve is given as: Q=100-5P, the supply curve is given as Q=3P...

    Question 1: In a perfectly competitive market, the demand curve is given as: Q=100-5P, the supply curve is given as Q=3P-12. Compute the total social surplus of this market. If the government impose a tax on the producers, and the tax rate is $2 per unit produced. What is the deadweight loss? If the government impose a tax on the consumers, and the tax rate is $2 per unit purchased, graphically show the change in the market equilibrium and the...

  • Problem IV. Demand and supply curves for two large countries are given by figure 1. Answer...

    Problem IV. Demand and supply curves for two large countries are given by figure 1. Answer the following questions. (38 points) 1. Consider the autarky situation. (a) Calculate CS, PS, GS, and TS for both countries. (3 povints) 2. Now, suppose countries open to trade. (a) Which country imports and which exports? (0.5 point) (1) Derive import demand for importer and export supply for exporter. You can either draw both curves with appropriate labeling and placing numbers or write equations....

  • Suppose we have the following demand and supply functions (taken from Ass HOME Demand P 100-...

    Suppose we have the following demand and supply functions (taken from Ass HOME Demand P 100- 2Q Suppl PhQ FOREIGN Demand P 2002Q Supply P Q 2: Two-country model with EXPORT TARIFFS: use the functions above. Suppose the exporter imposes an export tax of S2 per unit. Calculate the new equilibrium world price. What are the tariff-ridden domestic prices? (2 points) a) Find the change in Consumer and Producer Surplus in each country. Recall that export tariffs need to be...

  • Problem IV. Demand and supply curves for two large countries are given by figure 1. Answer...

    Problem IV. Demand and supply curves for two large countries are given by figure 1. Answer the following 1. Consider the autarky situation. (a) Calculate CS, PS, GS, and TS for both countries (3 points) 2. Now, suppo countries open to trade (a) Which country imports and which exports? (0.5 point) (b) Derive import demand for importer and export supply for exporter. You can either drawe both curves with appropriate labeling and placing numbers or write equations. ( points) (e)...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT