Calculate the quotas redistributive effect

Assignment Help Microeconomics
Reference no: EM1382115

• The table and graph shown below illustrate the demand and supply schedules for television sets in Venezuela, a "small" nation that is unable to affect world prices.

2317_Calculate the quotas redistributive effect.png

In addition to the answer for each item below, describe in a few sentences how you solved each part of the problem. (This will allow the instructor to assign partial credit in case an answer is incorrect.)

• Suppose Venezuela imports TV sets at a price of $150 each. Under free trade, how many sets does Venezuela produce, consume, and import?

• Assume that Venezuela imposes a quota that limits imports to 300 TV sets. Determine the quota induced price increase and the resulting decrease in consumer surplus.

• Calculate the quota's redistributive effect, consumption effect, protective effect, and revenue effect.

• Assuming that Venezuelan import companies organize as buyers and bargain favorably with competitive foreign exporters, what is the overall welfare loss to Venezuela as a result of the quota?

• Suppose that Venezuelan exporters organize as a monopoly seller. What is the overall welfare loss to Venezuela as a result of the quota?

Reference no: EM1382115

Questions Cloud

Evaluating the purpose of a message : List three helpful questions to ask in evaluating the purpose of a message. Give examples to show how those questions are helpful.
Explain main points to write in the communications plan : Recognize the main points you would write in the communications plan at this point in project. What suggestions would you give your project team to aid it manage user expectations?
Interaction using electronic channel : Explain how you could have changed your communication behaviors to make the interaction more effective while still using the electronic channel.
Hybridization to detect mrna : Assume i f you are performing in-situ hybridization to detect mRNA, why do you use the antisense strand? Are you using RNA or DNA as a probe for mRNA?
Calculate the quotas redistributive effect : Calculate the quota's redistributive effect, consumption effect, protective effect, and revenue effect and what is the overall welfare loss to Venezuela as a result of the quota?
Gender and racial diversity in organization : Illustrate out the degree to which there is gender and racial diversity in your organization. More specifically, you are to examine the degree of diversity of the people in the "leadership" positions relative to the rest of the workforce.
Compare changes in the carbon cycle : Compare changes in the carbon cycle to that of the nitrogen cycle on human health. Create a conceptual graphical model for how changing the carbon cycle is likely to impact human health.
We-versus-me orientation : Apply the communication competence model to the jury in the movie. Concentrate on the We-versus-Me orientation, skills and knowledge, appropriateness and effectiveness, sensitivity, commitment, and ethics.
Analyzing rates of twin births : Researchers analyzed rates of twin births in the Sami population of Northern Scandinavia during the 18th and 19th centuries.

Reviews

Write a Review

 

Microeconomics Questions & Answers

  Labor market indicator

Discuss why is it difficult to estimate who is and who is not in the labor force? What consequence does this have, if any, for the labor market indicator?

  Compute number of units and unit price

Consider a market characterized by the following inverse demand and supply functions: PX = 10 - 2QX and PX = 2 + 2QX?

  Social cost-benefit analysis

Briefly describe the major categories of expected benefits and expected costs from undertaking the project and explain how and where the value of human lives saved or lost might enter this analysis, and explain whether all of these effects are addr..

  Computing banking required reserves

Assume that the banking system's nonborrowed reserves total $48.3 billion, with total legal reserves standing at $51.2 billion. What must lent reserves be?

  Interpreting elasticity coefficients

Price elasticity of demand and Income elasticity of demand What impacts will have the construction of a new natural gas company on oil demand. And on electricity demand? Justify.

  Calculate the net present value and benefit-cost ratio

Calculate the net present value and benefit-cost ratio for four different discount rates

  Prohibitions policy by government

Discuss and explain the limitations of the United States "supply side" policy in the war on drugs. Can we win the war on drugs? Describe your position on legalization.

  Analysis of monopolist comapny

Assume the demand curve for a monopolist is Qd=500-P, and the marginal revenue function is MR=500-2Q. The firm has a marginal and average total cost of $50per unit.

  Infant formula industry market

Find out the market structure (competition, monopolistic competition, oligopoly, and monopoly) that best characterizes the infant formula industry.

  Question on quantitative data

You've been asked to apply your decision-making skills and analysis to the merchandising of JMI's travel product stores. Much of the floor display space is taken up by innovations department. Describe the type of accounting quantitative data you wi..

  Ratio of marginal product

You were recently hired to replace the manager of the Roller Division at a major conveyor manufacturing firm, despite the manager's strong external sales record.

  Define depository institution

Define depository institution, and discuss types of depository institutions are found in the U.S. and how do they act as intermediaries between savers and borrowers?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd