What does the quantity exported do to the domestic price

Assignment Help Macroeconomics
Reference no: EM131523103

Assignment: International Trade

A) Assess the impact of IMPORTS, assuming that the world price is below the domestic price:

• If the world price is below the domestic price, what do imports do to the domesticsupply of roses
• What does the increased supply of imported roses do to the domestic price ofroses?
• What does the lower price do to domestic producers' incentive to produce?
• What does a lower price do to the quantity demanded by domestic consumers?
• Does the amount of consumer surplus increase or decrease?
• What happens to domestic producer surplus?

B) Assess the impact of EXPORTS on domestic supply and demand, assuming that the world price is higher than the domestic price:

• If the world price is higher than the domestic price, what will domestic producerswant to do?
• What does the quantity exported do to the domestic price?
• What does a higher domestic price do to the quantity consumed domestically?
• What has happened to the domestic consumer surplus?
• What has happened to the domestic producer surplus?

Reference no: EM131523103

Reviews

Write a Review

 

Macroeconomics Questions & Answers

  What happens to the areas of the consumer surplus

Now assume that the government imposes a price ceiling of $4 per bushel on tomatoes. What do we call this situation Which curve (supply or demand) sets the actual number of tomatoes traded in the market if the price ceiling is in place

  Equation for market demand for harry potter books

What is the equation for the market demand for Harry Potter books if all consumers have the same equation for demand as Laurel? What is the price elasticity of the market demand for Harry Potter at P = 12.5? Compare it to Laurel's price elasticity o..

  Return to the market failure

Response question: Return to the market failure you identified in week 2. What policy mechanism would be best to address it? Why would other mechanisms be inappropriate? Would there be potential side effects?

  Identify three major price indexes

Discuss how econometric models describe the behavior of the economy.

  Dramatic decrease in the growth rate of economic activity

Suppose that the supply of fossil fuels like coal and petroleum will become more and more scarce in the next fifty years.

  The relation among number of technicians recruited per hr

The relation among the number of technicians recruited per hour and the number of radiographs produced per hour is shown in the following table.

  Give two conditions that would allow for an increase in the

Usually we argue, to attain more of one alternative, we must sacrifice something else. Give two conditions that would allow for an increase in the production of the two goods identified in the chapter (HINT: Recall various positions on a PPC; review ..

  Define basic principles of organizational architecture

Evaluate the following statement: "I am a manager in a governmental agency. I have no control over compensation policy. All workers are paid the same salary (everyone is paid according to a set schedule and their remuneration cannot be adjusted by..

  Why would a nation such as the united states

Why would a nation such as the United States, which can presumably produce everything it needs itself, choose to trade with other nations?

  Conditions-skill levels of people in particular different

What are non-profitable organizations that work to improve the image, working conditions and skill levels of people in particular different occupations?

  Analyze the major barriers for entry and exit into the

analyze the major barriers for entry and exit into the airline industry. explain how each barrier can foster either

  How could central bank achieve goal in short run

An economy is in long-run macroeconomic equilibrium with an unemployment rate of 5% when the government passes a law requiring the central bank to use monetary policy to lower the unemployment rate to 3% and keep it there.

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