Discuss about the welfare effects of a tariff

Assignment Help Microeconomics
Reference no: EM132201199

Question: Welfare Effects of a Tariff

Given the same demand and supply equations as in question #1, suppose the free trade world price is $100.

a. Solve for the amount imported, consumer surplus, and producer surplus.

b. Suppose a per unit tariff of S60 is imposed by the government, solve for the consumer surplus, producer surplus, government revenue and total surplus with the tariff.

c. Solve for the change in consumer surplus, the change in producer surplus, the change in government revenue and change in total surplus (i.e. the deadweight loss) from the free trade case (without the tariff). To do this, make the calculations using your answers in 3a, and calculate total surplus under free trade).

Reference no: EM132201199

Questions Cloud

Write the equation showing the relationship : Suppose the return from the market portfolio when return from asset A is 0 is β0, and the increase in market return from a 1 unit increases in return.
What is the probability that the majority of the residents : If you visit 64 houses, what is the probability that the majority of the residents at the houses you visit will be in support of your candidate?
Explain the costs and benefits of leagues limiting entry : Explain the costs and benefits of leagues limiting entry. Use thedifferent revenue in two leagues (NHL, MLB, NFL, and NBA) to explain why the choice of stadium.
What interest rate is required to make the given happen : The value of an investment comes from its cash flows. Let's say you are intent on receiving $45,000 per year, starting at the end of year one and continuing.
Discuss about the welfare effects of a tariff : Given the same demand and supply equations as in question #1, suppose the free trade world price is $100. Solve for the amount imported, consumer surplus.
Confidence interval estimate of the mean sat scores : Construct a 95% confidence interval estimate of the mean SAT scores. Show all work. Just the answer, without supporting work, will receive no credit
What are favourable outcome of probability of given even : What are favourable outcome of probability of the given event: choosing seven numbers that match seven randomly selected balls when the balls are numbered 1 thr
Estimate of the proportion of adults living : 1.) A survey showed that 850 of the 1600 adult respondents who live in a household without landline phones.
How the individual firm maximizes profit in the short run : The market for bread in Brooklyn, NY is characterized by perfect competition. Firms and consumers are price takers and in the long run there is free entry.

Reviews

Write a Review

Microeconomics Questions & Answers

  What is the highest possible price per unit

what is the highest possible price per unit that could exist as the market price in long-run equilibrium and If that price ends up being the market price and if the normal rate of profit is 10 percent, then how big will each firm's accounting profit..

  Concentration for treated monitors

(a) Compute the mean log NO2 concentration for treated monitors before and after the nearest toll plan was converted to E-ZPass. Is there a statistically significant change in NO2 levels? Repeat for monitors that ware from 4-10 km from the nearest to..

  Is the given statement true or not

A firm uses 3 different inputs K, L and R to make two final products X and Y. Each unit of X produced requires 2 units of K, 8 units of L and 23 units of R.

  Decreased the average selling price of its phones

Revenue at a major cellular telephone manufacturer was $2.3 billion for the nine months ending March 2, up 85 percent over revenues for the same period last year. Management attributed the increase in revenues to a 108 percent increase in shipments, ..

  The market and total employment by firm

The market represented in exhibit above is allowed to operate freely, find the total employment in the market and total employment by the firm

  What is the marginal transformation rate for each country

What is the marginal transformation rate for each country? Should the two countries specialize and trade? If so, who has the comparative advantage in what product? Once they specialize, how much does output increase?

  Explains the role the federal government budgetary outcome

Calculate consumption, government purchases, national savings, and investment - explains the role the federal government budgetary outcome

  International global economic effect of the crisis in greece

International Global Economic Effect of the Crisis in Greece

  Supply is elastic or inelastic at levels of q

For each of the following supply curves, calculate the level of output Q at which the elasticity of supply = 1, and indicate whether supply is elastic or inelastic at levels of Q less than this point and at level of Q greater than this point.

  Non-rival and non-excludable

If a good is non-rival and non-excludable, it will never be produced by the private sector (i.e., public sector intervention is required in order for a non-zero quantity of such a good to be produced). Clearly explain why this answer is false.

  Instead of reducing its purchases

Assume that government purchases decrease by $10 billion, with other factors held constant, including the price level. Calculate the change in the level of real GDP demanded for each of the following values of the MPC. Then, calculate the change if t..

  Transaction costs of bargaining are zero

Recall our example of an investment of $100,000 in research that yields a pioneering invention that has no commercial value, and a subsequent investment of $50,000 in development that yields an improvement that has commercial value of $1 million. Ass..

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