Macmillan Learning The graph depicts the market for solar panels with free trade. Suppose Congress places a 33% tariff on imported solar panels. a. Adjust the graph to reflect the new tax. b. What is the deadweight loss due to the tariff? Deadweight loss: $ 7000 2,000 1,900 1,800 Supply 1,700 domestic 1,600 1,500 1,400 1,300 1,200 ,100 9,000 900 World price 800 700 600 500 400 300 200 100 Demand domestic 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Quantity (thousands) Give Up? Q Hint lestion 1 of 14 Attempt 4 The graph depicts the market for solar panels with free trade. Congress places a 33% tariff on imported solar panels. a. Adjust the graph to reflect the new tax. Σoob. What is the deadweight loss due to the tariff? b. What is the deadweight loss due to the tariff? Deadweight loss: $ Suppose

The nation of Theopolis recenty put a tariff on the importation of washing machines. Which of the following statements is true based on this information? (a) This tariff harms consumers in Theopolis who buy washing machines (b) This tariff benefts the producers of washing machines in Theopolis (c) This tarif hurts the producers of washing machines in other countries that export to Theopolis  (d) The tariff will increase overall weltare in Theopolis  Explain all the false answers also

1. Your textbook discusses the benefits of cheaper imports on pages 171-173. Draw a graph that shows the effects on consumer and producer surplus (gain or loss) that result from a country importing a good. 2.  Recently, China placed tariffs on the importation of US soybeans. Assume that the domestic market for soybeans in China is described by the following equations:      Demand: P = 115 – 1/15Q     Supply: P = 55 + 1/15Q             Where P is Yuan per bushel of soybeans and Q is 10 million bushels per year. The world price for soybeans is ¥65/bushel. Graph the soybean market in China showing equilibrium both with no barriers to trade and with a ¥15/bushel tariff. Be sure to fully and clearly label the graph including the Domestic Demand curve, Domestic Supply curve, the World Price, and the Price with tariffs. 3. How many bushels of soybeans can the US export to China if there are no tariffs? How many bushels with the imposed tariff? 4. Who are the greatest benefactors of China’s…

Suppose the nation of Isoland is an importer of textiles and is looking for a way to raise government revenue. The following graph shows the effect of a tariff on textile imports. Price of Textiles с G 1 B Supply P+T D E F Demand PW I Q "S,1 $2 Quantity of Textiles Having rejected a tariff on textiles (a tax on imports), the president of Isoland is now considering the same-sized tax on textile consumption (including both imported and domestically produced textiles). Under a textile consumption tax, the quantity of textiles consumed in Isoland is and the quantity produced in Isoland is The following table shows the effect of an import tariff on the nation of Isoland. Complete the remaining columns of the following table by indicating the effect of the same-sized tax on textile consumption. Under Tariff Before Tariff or Tax After Consumer Surplus Producer Surplus Government Revenue None Total Surplus A+B+C+D+E+F G A+B Change -(C+D+E+F) Under Consumption Tax After Change C+G +C E +E…

Show graphically that for any tariff, there is an equivalent quota that would give the same result. What would be the difference, then, between the two types of trade barriers? Hint: It is not something you can see from the graph.

How would direct subsidies to key industries be preferable to tariffs or quotas?

Assume two countries, Thailand (T) and Japan (J), have one good: cameras. The demand (d) and supply (s) for cameras In Thailand and Japan is described by the following functions: QsT=-5+14P QsJ=-10+14P QdT=60-P QdJ=80-P P is the price measured in a common currency used in both countries, such as the Thai Baht. Compute the equilibrium price (P) and quantities in each country without trade. Now assume that free trade occurs. The free-trade price goes to 56.36 Baht. Who exports and Imports cameras and in what quantities?

The minister for labor of the Utopia (small country) is eager to encourage domestic production of bikes. A small bike industry exists, but only a few producers can survive foreign competition without government help. The country decided to help the local producers, the problem is the country has no idea what to do, some argues for 20% tariff and others thought 20% subsidy can gain same benefits to the country with less social cost. a.      Show the following diagrammatically: The effects of the tariff on domestic bike output and consumption. The beneficial side effects of the tariff. The net gains or losses for the country.   4. All the same effects for the case of the production subsidy. 5. The differences in the effects of the two alternatives on the government’s budget.   b. Can you describe a policy that captures the alleged benefits of worker training better than either the 20% tariff or the 20% subsidy?

Suppose the nation of Isoland is an importer of textiles and is looking for a way to raise government revenue. The following graph shows the effect of a tariff on textile imports.   Price of TextilesQuantity of TextilesDemand   Supply   PWPW+TABCDEFGQS,1QS,2QD,2QD,1   Having rejected a tariff on textiles (a tax on imports), the president of Isoland is now considering the same-sized tax on textile consumption (including both imported and domestically produced textiles). Compared to the free trade scenario, the quantity of textiles consumed in Isoland will    , and the quantity produced in Isoland will    under a textile consumption tax.   The following table shows the effect of an import tariff on the nation of Isoland. Complete the remaining columns of the following table by indicating the effect of the same-sized tax on textile consumption.   Before Tariff or Tax Under Tariff Under Consumption Tax After Change After Change Consumer Surplus…

The figure provided shows the market for calculators. Price of calculators $45 40 30 world price with tariff 20 10 world price 50 100 200 300 400 500 600 700 800 900 Quantity of calculators Deadweight loss arising from the tariff is, in numerals, $