Question: Please help! 6. (20 pts) Show your work! For all parts a) through f) below, refer to the graph shown for a small product is

Please help!

Please help! 6. (20 pts) Show your work! For all parts a)

6. (20 pts) Show your work! For all parts a) through f) below, refer to the graph shown for a small product is country that is a price-taker internationally for this product. Assume the international supply of this (horizontal) perfectly elastic $4.50 unit at a price of $1.00 per $4.00 $3.50 $3.00 $250 $2.00 $1.50 $1.00 $0.50 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 Quantity a) If there are no trade restrictions, this country will produce units. b) At the world price, they will import units. c) Starting from a free trade equilibrium, a tariff in the amount of $0.50 per unit would be expected to cause domestic consumption to change from units to units. d) Starting from a free trade equilibrium, a tariff in the amount of $0.50 per unit would be expected to cause imports to change from units to units. e) If government imposes a tariff in the amount of $0.50 per unit, it will collect revenue in the amount of $ f) To have the same effect on imports as a $0.50 per-unit tariff, the government would need to set an import quota of units. g) If the government wanted to eliminate all imports, what is the minimum level of tariff that they would need to impose

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!