2. large country. Use the Now assume that Economica is a domestic supply and domestic demand...
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2. large country. Use the Now assume that Economica is a domestic supply and domestic demand curves from the top of the page to calculate Economica's import demand curve. The export supply curve is as follows Price 0 20 40 60 80 a. Graph the import b. Now assume that demand and export supply curves. Economica imposes a $20 per barrel tariff on oil imports. Graph the effect of the tariff on the export supply curve, using your graph from part a. Use your graph to calculate the following (provide numerical answers. C. Quantity 0 50 100 150 200 You will need to graph accurately) the price of oil in Economica g. h. d. the price of oil in the Rest of the World e. Graph the domestic supply and demand curves given at the beginning of the problem. Use your graph in part e and information on the price of oil in parts c and d to calculate the following: f. Deadweight loss of the tariff in Economica the terms of trade effect The effect of the tariff on total surplus (consumer, producer and government) in Economica i. Bonus. Calculate deadweight loss in the rest of the world 3. Bonus. Read the article "Trump's Tariffs Will Hurt Trade, and Trade is a Good Thing Really". 5 points each. a. The author makes an analogy between a country's trade deficit and an individual's trade deficit. What is this analogy? b. The author states that tariffs "are great for a protected business and its workers, at least for a while." Why are tariffs great for protected businesses only for a while" and not over the long run? Point values: 2a and 2e are worth 10 points. All other problems are worth 5 points. 2. large country. Use the Now assume that Economica is a domestic supply and domestic demand curves from the top of the page to calculate Economica's import demand curve. The export supply curve is as follows Price 0 20 40 60 80 a. Graph the import b. Now assume that demand and export supply curves. Economica imposes a $20 per barrel tariff on oil imports. Graph the effect of the tariff on the export supply curve, using your graph from part a. Use your graph to calculate the following (provide numerical answers. C. Quantity 0 50 100 150 200 You will need to graph accurately) the price of oil in Economica g. h. d. the price of oil in the Rest of the World e. Graph the domestic supply and demand curves given at the beginning of the problem. Use your graph in part e and information on the price of oil in parts c and d to calculate the following: f. Deadweight loss of the tariff in Economica the terms of trade effect The effect of the tariff on total surplus (consumer, producer and government) in Economica i. Bonus. Calculate deadweight loss in the rest of the world 3. Bonus. Read the article "Trump's Tariffs Will Hurt Trade, and Trade is a Good Thing Really". 5 points each. a. The author makes an analogy between a country's trade deficit and an individual's trade deficit. What is this analogy? b. The author states that tariffs "are great for a protected business and its workers, at least for a while." Why are tariffs great for protected businesses only for a while" and not over the long run? Point values: 2a and 2e are worth 10 points. All other problems are worth 5 points.
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2a The import demand and export supply curves can be shown as follows Price 0 Quantity 0 20 40 50 100 60 80 150 200 Import Demand Price 0 Quantity 0 2... View the full answer
Related Book For
Principles of Macroeconomics
ISBN: 978-0134078809
12th edition
Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster
Posted Date:
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