Assume that the United States, as a steel-importing nation, is large enough so that changes in the quantity of its imports influence the world price ofsteel. The following table shows the U.S. supply and demand schedules for steel, along with the overall amount of steel supplied to U.S. consumers bydomestic and foreign producers.PriceQuantity Supplied(Dollars per ton) (Domestic) (Domestic plus Imports) Quantity Demanded10000152004143008134001212500161160020107005249Using the data in the table, use the blue points (circle symbol) to plot the demand curve and use the orange points (square symbol) to plot the supplycurve (domestic plus imports) on the following graph. Then use the black cross to indicate the equilibrium price and quantity.BOO-ODemand-PSupply us free trade+Equilibrium Free trade4Supply wond witEquilibriumPRICE (Dollars per fon)700600500400300200100+060123410 12 14 16 18 20 22 2402 4QUANTITY (Tons of steel)With free trade, the equilibrium price of steel is Sper ton. At this price,tons are purchased by U.S. buyers,tons are supplied by U.S. producers, andtons are imported.Suppose that to protect its producers from foreign competition, the U.S. government levies a specific tariff of $250 per ton on steel imports. As aresult, the free tradecurve shifts to the by an amount,the amount of the tariff.*On the previous graph, use the purple point (diamond symbol) to plot the new world supply curve after the tariff is imposed. Then use the grey point(star symbol) to indicate the equilibrium point given the tariff of $250.The new equilibrium istons of steel traded at 3per ton. At this price, U.S. producers supplytons, andtons are imported.

A tax is a sort of expense required by a country on an imported decent at the line. Taxes have…

ed lus Imports) Quantity Demanded 0 15 14 8 13 12 12 16 20 10 24 9 mbol) to plot the demand curve and use the orange points (square symbol, hen use the black cross to indicate the equilibrium price and quantity. ? Demand -P- Supply us free trade EquilibriumFree trade Supply wond wit *

ed lus Imports) Quantity Demanded 0 15 14 8 13 12 12 16 20 10 24 9 mbol) to plot the demand curve and use the orange points (square symbol, hen use the black cross to indicate the equilibrium price and quantity. ? Demand -P- Supply us free trade EquilibriumFree trade Supply wond wit *

Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781305971509

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: Application: International Trade

Section: Chapter Questions

Problem 7PA

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Assume that the United States, as a steel-importing nation, is large enough so that changes in the quantity of its imports influence the world price of steel. The following table shows the U.S. supply and demand schedules for steel, along with the overall amount of steel supplied to U.S. consumers by domestic and foreign producers. Price (Dollars per ton) 100 200 300 400 PRICE (Dollars per ton) 800 700 600 500 400 300 200 100 500 600 700 0 0 2 Using the data in the table, use the blue points (circle symbol) to plot the demand curve and use the orange points (square symbol) to plot the supply curve (domestic plus imports) on the following graph. Then use the black cross to indicate the equilibrium price and quantity. ? 6 (Domestic) 0 0 1 2 3 5 Quantity Supplied The new equilibrium is (Domestic plus Imports) 0 8 10 12 14 16 18 20 QUANTITY (Tons of steel) With free trade, the equilibrium price of steel is $ 4 8 12 16 20 24 tons are supplied by U.S. producers, and tons are imported.…
Analyze the import on the market demand for cosmetics under the following situations: (a) A change in the sex ratio of the population increasing the females against males in number. (b) A general price rise in consumer product by 10 per cent. (c) An increase in excise duties on cosmetics.
Discuss the price elasticity of demand and the price elasticity of supply of goods that have low value but are limited in supply. Discuss why the reduction in world price of such commodities can be considered harmful to an economy that exports such commodities.
The following graph shows the U.S. domestic market for towels. PRICE (Dolars) Domestic Demand Domestic Supply 24 72 1.20 QUANTITY (Millions of towels) Price (World) Price (Quota) (7) In the absence of foreign trade, the equilibrium price of a towel is domestic quantity supplied equal million towels. At this price, both the domestic quantity demanded and the Suppose that trade between the United States and China is open and that the United States initially imposes no tariffs or quotas on towels imported from China. Assume that China has a comparative advantage in producing towels and charges the world price of $12 per towel. (Note: Throughout the problem, assume that the amount demanded by any one country does not affect the world price of towels.) On the previous graph, use the grey line (star symbol) to indicate the world price of towels. million towels, the quantity of towels supplied by At the world price of $12 per towel, the quantity of towels demanded by U.S. buyers is U.S.…
Suppose that the world price of oil is $70 per barrel and that the United States can buy all the oil it wants at this price. Suppose also that the demand and supply schedules for oil in the United Sta follows: Price ($ per Barrel) 55 60 65 70 75 U.S. Quantity Demanded 26 24 22 20 18 U.S. Quantity Supplied 14 16 18 20 22 Now suppose that the United States allows no oil imports. The equilibrium price in the United states is $ 70 per barrel and the equilibrium quantity is 20 million barrels. If the United States imposed a price ceiling of $65 per barrel on the oil market and prohibited imports, there would be an of million barrels of oil. excess supply excess demand
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International Trade – End of Chapter Problem - The accompanying table provides data regarding domestic demand and domestic supply of apples in the United States. Quantity supplied domestically (millions of pounds per year) Price Quantity demanded domestically (per apple) (millions of pounds per year) 0.15 6,290 9,730 0.25 7,150 8,870 0.35 8,010 8,010 0.45 8,870 7,150 0.55 9,730 6,290 a. Based on the information provided in the table, move the points to plot the domestic demand and domestic supply curves in the graph. Market for apples 80 75 Consumer surplu.. Domestic demar 70 65 Producer surplu... Domestic supp. 60
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The tsunamis that hit Japan in 2011 and India and Sri Lanka in 2004 were devastating, and their effects were felt for many years afterward. Natural disasters of this type as well as international events often result in severe disruptions to the supply ofallegations that meat inspectors and politicians had received bribes to overlook improper meat packing practices and allow sales of tainted food. How would the closing of export markets for a country’s beef products together with a fall in domestic sales of beef products and an increase in the domestic equilibrium quantity be reflected in supply-anddemand diagrams of that country’s foreign and domestic markets for beef in the short run?
If the United States is currently importing 14 million barrels per day at a world price of $4.00 per unit (the entire amount consumed), what is the effect on imports of a tax equal to $4.00 per unit? 1.) Using the line drawing tool, help determine the quantity of U.S. crude oil imports after the $4.00 per-unit tax by drawing a horizontal line at the price paid by U.S. consumers. Label this line + Tax'. 2.) Using the point drawing tool, determine quantity demanded at the price paid by U.S. consumers after the imposition of the import tax. Label this line 'Pop'. 3.) Using the point drawing tool, determine quantity supplied at the price paid by U.S. consumers after the imposition of the import tax. Label this line "Pas". Carefully follow the instructions above and only draw the required objects. The amount of imports after the $4.00 per-unit tax is million barrels per day. Before the tax, domestic producers supplied 0 barrels of crude oil. They now supply million barrels Price per barrel…
If the United States is currently importing 14 million barrels per day at a world price of $4.00 per unit (the entire amount consumed), what is the effect on imports of a tax equal to $8.00 per unit? Quantity of Barrels Supplied (Millions) Quantity of Barrels Demanded (Millions) 0 2 4 6 8 10 12 The amount of imports after the $8.00 per-unit tax is responses as a whole number.) ges Price per Barrel Get more help. $4 8 Using the table above, after the imposition of the $8.00 per-unit tax, the new quantity supplied is 4 million barrels and the new quantity demanded is 12 million barrels. (Enter your responses as a whole number.) 12 16 20 24 28 14 13 12 11 10 9 8 million barrels per day. Before the tax, domestic producers supplied 0 barrels of crude oil. They now supply million barrels Clear all (Enter your more less Check answer (e)
. During the 1980s most of the global supply of lysine was produced by a Japanese company named Anjinomoto. Lysine is an essential amino acid that is an important livestock feed component. At this time, the US imported most of this global supply of lysine (more than 30,000 tons) to use in livestock feed at a price of $1.65 per pound. The global market for lysine, however, fundamentally changed in 1991 when US-based Archer Daniels Midland (ADM) began producing lysine; a move that doubled worldwide production capacity. Experts conjectured that the marginal cost of producing lysine was approximately $0.70 per pound. Despite ADM's entry into the lysine market, suppose demand remained constant at Q = 208 – 80P (in millions of pounds). Shortly after ADM began producing lysine, the worldwide price dropped to $0.70. By 1993, however, the price of lysine shot back up to $1.65. Give a plausible explanation for what might have happened in the lysine market. Support your answer with appropriate…