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Kazakhstan is an apple producer, as well as an importer of apples. Suppose the following graph shows Kazakhstan's domestic market for apples, where S, is the supply curve and D, is the demand curve. The free trade world price of apples ( ) is $200 per ton. Suppose Kazakhstan's government restricts imports of apples to 200, 000 tons. The world price of apples is not affected by the quota. Analyze the effects of the quota on Kazakhstan's welfare. On the following graph, use the purple line (diamond symbol) to draw the Kazakhstan's supply curve including the quota S. (Hint: Draw this as a straight line even though this curve should be equivalent to the domestic supply curve below the world price.) Then use the grey line ( star symbol) to indicate the new price of apples with a quota of 200, 000 apples. In the previous graph, use the green area (triangle symbol) to shade the area that represents the effect of the quota on domestic producer surplus (PS) relative to domestic producer surplus under free trade. Use the tan quadrilateral ( dash symbols) to shade the area that represents the quota rents. Finally, use the black areas (plus symbol) to indicate the deadweight loss (DWL) resulting from the quota's consumption and protective effects. The equivalent import tariff for Kazakhstan's apple import quota is per ton of apples. If Kazakhstan's government auctions off the quota licenses in a well - organized, competitive auction, Kazakhstan experiences a deadweight loss of (Hint: Select a shaded region to see its area. Be sure to adjust for the units on the quantity axis.) Kazakhstan is an apple producer, as well as an importer of apples. Suppose the following graph shows Kazakhstan's domestic market for apples, where JK is the supply curve and DX is the demand curve. The free trade world price of apples (PW) is $200 per ton. Suppose Kazachstan's government restricts imports of apples to 200,000 tons. The world price of apples is not affected by the quota. Analyze the effects of the quote on Kazakhstan's welfare. On the following graph, use the purple line (diamond symbol) to draw the Kazakhstan's supply curve including the quota SK+@ (Hint: Draw this as a straight line even though this curve should be equivalent to the domestic supply curve below the world price. ) Then use the grey line (star symbol) to indicate the new price of apples with a quota of 200,000 apples. (? 1142 Frice with Chirite DWEL QUANTITY @Thattents flick In the previous graph, use the green area (triangle symbol) to shade the area that represents the effect of the quota on domestic producer surplus (PS) relative to domestic producer surplus under free trade. Use the tan quadrilateral (dash symbols) to shade the area that represents the quota rents. Finally, use the black areas (plus symbol) to indicate the deadweight loss (DWL) resulting from the quota's consumption and protective effects. The equivalent import tariff for Kazakhstan's apple import quota Is $ per ton of apples. If Kazakhstan's government auctions off the quota licenses in a well-n ganized, competilive auction, Kazakhstan experiences a deadweight loss of $ (Hint; Soleat a shaded region to see its area. Be sure to adjust for the units on the quantity axis. ) 
 

Transcribed Image Text:

Kazakhstan is an apple producer, as well as an importer of apples. Suppose the following graph shows Kazakhstan's domestic market for apples, where S is the supply curve and D is the demand curve. The free trade world price of apples (P) is $200 per ton. Suppose Kazakhstan's government restricts imports of apples to 200,000 tons. The world price of apples is not affected by the quota. Analyze the effects of the quota on Kazakhstan's welfare. On the following graph, use the purple line (diamond symbol) to draw the Kazakhstan's supply curve including the quota S Sk+Q (Hint: Draw this as a straight line even though this curve should be equivalent to the domestic supply curve below the world price.) Then use the grey line ( star symbol) to indicate the new price of apples with a quota of 200,000 apples. In the previous graph, use the green area (triangle symbol) to shade the area that represents the effect of the quota on domestic producer surplus (PS) relative to domestic producer surplus under free trade. Use the tan quadrilateral ( dash symbols) to shade the area that represents the quota rents. Finally, use the black areas (plus symbol) to indicate the deadweight loss (DWL) resulting from the quota's consumption and protective effects. The equivalent import tariff for Kazakhstan's apple import quota is per ton of apples. If Kazakhstan's government auctions off the quota licenses in a well-organized, competitive auction, Kazakhstan experiences a deadweight loss of (Hint: Select a shaded region to see its area. Be sure to adjust for the units on the quantity axis.) Kazakhstan is an apple producer, as well as an importer of apples. Suppose the following graph shows Kazakhstan's domestic market for apples, where K is the supply curve and Dy is the demand curve. The free trade world price of apples (Pw) is $200 per ton. Suppose Kazachstan's government restricts imports of apples to 200,000 tons. The world price of apples is not affected by the quota. Analyze the effects of the quota on Kazakhstan's welfare. On the following graph, use the purple line (diamond symbol) to draw the Kazakhstan's supply curve including the quota SK+Q (Hint: Draw this as a straight line even though this curve should be equivalent to the domestic supply curve below the world price.) Then use the grey line (star symbol) to indicate the new price of apples with a quota of 200,000 apples. 1142 802 652 is. coo 206 314 300 300 11 2 r 111, 15: AR 350 200 300 350 240 GLANT TY (The of * 45 300 401 41 500 - Spu HOT Frica with Gula A Grape in PS Darre DAVA In the previous graph, use the green area (triangle symbol) to shade the area that represents the effect of the quota on domestic producer surplus (PS) relative to domestic producer surplus under free trade. Use the tan quadrilateral (dash symbols) to shade the area that represents the quota rents. Finally, use the black arces (plus symbol) to indicate the deadweight loss (DWL) resulting from the quota's consumption and protective effects. The equivalent import tariff for Kazakhstan's apple import quota is $ per bon of apples. If Kazakhstan's government auctions off the quota licenses in a well-organized, competitive. auction, Kazokhstan experiences a deadweight ass of (Hint, Scle a shaded region to see its area. Be sure to adjust for the units on the quantity axis.) Kazakhstan is an apple producer, as well as an importer of apples. Suppose the following graph shows Kazakhstan's domestic market for apples, where S is the supply curve and D is the demand curve. The free trade world price of apples (P) is $200 per ton. Suppose Kazakhstan's government restricts imports of apples to 200,000 tons. The world price of apples is not affected by the quota. Analyze the effects of the quota on Kazakhstan's welfare. On the following graph, use the purple line (diamond symbol) to draw the Kazakhstan's supply curve including the quota S Sk+Q (Hint: Draw this as a straight line even though this curve should be equivalent to the domestic supply curve below the world price.) Then use the grey line ( star symbol) to indicate the new price of apples with a quota of 200,000 apples. In the previous graph, use the green area (triangle symbol) to shade the area that represents the effect of the quota on domestic producer surplus (PS) relative to domestic producer surplus under free trade. Use the tan quadrilateral ( dash symbols) to shade the area that represents the quota rents. Finally, use the black areas (plus symbol) to indicate the deadweight loss (DWL) resulting from the quota's consumption and protective effects. The equivalent import tariff for Kazakhstan's apple import quota is per ton of apples. If Kazakhstan's government auctions off the quota licenses in a well-organized, competitive auction, Kazakhstan experiences a deadweight loss of (Hint: Select a shaded region to see its area. Be sure to adjust for the units on the quantity axis.) Kazakhstan is an apple producer, as well as an importer of apples. Suppose the following graph shows Kazakhstan's domestic market for apples, where K is the supply curve and Dy is the demand curve. The free trade world price of apples (Pw) is $200 per ton. Suppose Kazachstan's government restricts imports of apples to 200,000 tons. The world price of apples is not affected by the quota. Analyze the effects of the quota on Kazakhstan's welfare. On the following graph, use the purple line (diamond symbol) to draw the Kazakhstan's supply curve including the quota SK+Q (Hint: Draw this as a straight line even though this curve should be equivalent to the domestic supply curve below the world price.) Then use the grey line (star symbol) to indicate the new price of apples with a quota of 200,000 apples. 1142 802 652 is. coo 206 314 300 300 11 2 r 111, 15: AR 350 200 300 350 240 GLANT TY (The of * 45 300 401 41 500 - Spu HOT Frica with Gula A Grape in PS Darre DAVA In the previous graph, use the green area (triangle symbol) to shade the area that represents the effect of the quota on domestic producer surplus (PS) relative to domestic producer surplus under free trade. Use the tan quadrilateral (dash symbols) to shade the area that represents the quota rents. Finally, use the black arces (plus symbol) to indicate the deadweight loss (DWL) resulting from the quota's consumption and protective effects. The equivalent import tariff for Kazakhstan's apple import quota is $ per bon of apples. If Kazakhstan's government auctions off the quota licenses in a well-organized, competitive. auction, Kazokhstan experiences a deadweight ass of (Hint, Scle a shaded region to see its area. Be sure to adjust for the units on the quantity axis.)