Suppose that when a country opens to free trade in a good, the price of that good rises from $10 to $15.  As a result, the domestic quantity supplied rises from 1,000 to 1,020 and the domestic quantity demanded falls from 1,000 to 500.  What are the gains from trade?  Assume linear domestic supply and demand curves.

Q: Assume that country A can use its resources to produce 320 computers or 320,000 books, while country…

A: Since you have posted a question with multiple sub parts, we will solve first three subparts for…

Q: Market for Clothing in CambodiaConsumer SurplusProducer SurplusPrice of ClothingQuantity of…

A: (Since you have asked many questions, we will solve the first one for you. If you want any specific…

Q: Two countries each produce only pork and apples. Peru can produce either 25 thousand pounds of pork…

A: The table shows production of pork and apple by Peru and Nicaragua:

Q: Use the following assumptions to answer all questions: • There are three countries – Argentina,…

A: Since the question you have posted consists of multiple parts, we will answer the first three…

Q: Home has 1,200 units of labor available. It can produce two goods, apples and bananas. The unit…

A:

Q: bottom half    When Venezuela allows free trade of soybeans, the price of a ton of soybeans in…

A: Producer surplus refer to the difference between the minimum acceptance price of the producer and…

Q: The United States currently imports all of its coffee. The annual demand for coffee by U.S.…

A: The coffee market is competitive in the U.S. it means that each firm are price taker.

Q: a. Using the graph above, at the world price of $80 per tire, how many tires will the United States…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: Suppose the nation of Isoland is an importer of textiles and is looking for a way to raise…

A: Answer in step 2.

Q: Consider a hypothetical world consisting of only three countries: Liechtenstein, Canada, and France.…

A: Given:- Canada Supply price=$1.00 per bushel France supply price=$2.00 per bushel Liechtenstein…

Q: Use the following assumptions to solve this assignment: 1. There are three countries - Argentina,…

A: 1) It is given that each country has 60 hours and a country needs 2 barrels of crude oil. This…

Q: Suppose that a country implements a $20 tariff.  Before the tariff, the country was importing 900…

A: (Q.) Suppose that a country implements a $20 tariff.  Before the tariff, the country was importing…

Q: Production Advantage and Opportunity Costs Assume there are two countries, the United States and…

A: Given the automobiles produced by France = 100 Computer produced by France = 55 The automobiles…

Q: Suppose that Canada has domestic firms that could supply its entire market for radios at a price of…

A: On opening a Free trade with Mexico who is supplying radio at lower price as compared Canada's Price…

Q: States can produce a maximum of 600 bushels of barley or a maximum of 600 bushels of corn. Mexico…

A: The United States In USA the Barley opportunity cost are as follows 600 bushels of barley = 600…

Q: Suppose that an hour of work in Germany can produce 5 pastries or 4 sausages. In Denmark, an hour of…

A: Hey, Thank you for the question. According to our policy, we can only answer 3 subparts per…

Q: Suppose the U.S. government increases the amount of steel that can be exported to foreign countries.…

A: Exports and imports of a country contribute to the GDP of the country. A country must always try to…

Q: Suppose a small country implements a tariff on chicken imports and an export subsidy on soybeans. In…

A: Hi! thanks for the question but as per the guidelines, we can answer only one question at one time.…

Q: According to the principle of comparative advantage, - countries should specialize in the…

A: According to the law of comparative advantage, In the 2x2 model, even if one nation is less…

Q: The diagram below shows supply and demand curves for the same good in two countries, A and B. Based…

A: Explanation: Соuntry  А  is  exроrting  beсаuse  dоmestiс  рriсe  is  less  thаn  the  wоrld  рriсe.…

Q: Refer to Table 1-1  Assume that Derryland and Whetonia each has 40 labor hours available and that…

A:

Q: Suppose that the world price of bananas is 18 U.S. cents a pound and that when Australia does not…

A: Introduction International trade is indeed the transfer of capital, commodities, and services…

Q: Hubert and Kate run a catering business in which they have two major tasks: getting new cllenits and…

A: The trade would involve exchange of various goods and services. The trade would result in the…

Q: If a country opens up for trade, and it ends up importing a good, the net effect of importing that…

A: When the country opens up for trade then it implies that the country trades with other nations. This…

Q: Consider a hypothetical example of trade in steel between the United States and China. For…

A: Consumer surplus is the area above market price and below the demand curve. Producer surplus is the…

Q: In a Mixed Specific Factors model with two sectors, Cars (C) and Wheat (W), Capital (K) is specific…

A: Meaning of Mixed Specific Factors: Factor refers to those inputs that are used in the process of…

Q: Suppose there is a policy debate regarding the United States imposing trade restrictions on imported…

A: A political pundit argues that the government should impose a tariff on semiconductors because they…

Q: . The United States currently imports all of its coffee. The annual demand for coffee by U.S.…

A: Hey, Thank you for the question. According to our policy we can only answer 3 subparts per question.…

Q: Having rejected a tariff on textiles (a tax on imports), the president of Isoland is now considering…

A: A tax that is being imposed by one country on the goods and services that are being imported from…

Q: The following graph shows a fictional world economy that consists of only two countries, Greenberg…

A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Suppose the market for apples is characterized by the following set of equations: Qs = 100 + 20P…

A: Disclaimer - As you posted multiple questions we are supposed to solve only the first one.  Market…

Q: Suppose there are two countries, the U.S. and Mexico, each producing two goods, computers (C) and…

A: U.S can produce computer using 1 laborMexico can produce computer using 8 laborsThus, it implies U.S…

Q: Because the two countries produce more rye and more jeans under specialization, each country is able…

A: Since you posted multiple questions, we will provide you the answer of first question. If you want…

Q: Suppose Kenya is open to free trade in the world market for wheat. Because of Kenya's small size,…

A: Trade is an activity where the exchange of goods and services takes place between the seller and the…

Q: Economics QUESTION 28 The following figure shows the demand and supply schedules for an import good…

A: Government will receive the tax revenue, but also, the government is obliged to pay for the…

Q: In Norway, one worker can produce either 8 pounds of smoked fish or 8 barrels of oil. In Saudi…

A: Given:- Production in Norway=8 pound of fish or 8 barrels of oil Production in Saudi Arabia=5 pound…

Q: The analysis of a quota implies that ....   please select one or more : a) The effect of a quota…

A: The imposition of government on the trade restrictions limits the quantity for the consumers to…

Q: Suppose that, as part of an international trade agreement, the U.S. government reduces the tariff on…

A: Answer - Need to find - affect on the supply or the demand for coffee Given in the question -…

Q: impact of African swine fever. It is true that trade wars between the U.S. and China are…

A: The disease of Swine fever is known for its economic impact upon its smallholders and also on the…

Q: PLEASE ANSWER AND EXPLAIN NUMBER 2 AND 3 Suppose that the world demand and supply elasticities of…

A: Demand is determined by the consumer and supply is determined by the producer and   price is…

Q: Suppose Kenya is open to free trade in the world market for wheat. Because of Kenya's small size,…

A: Consumer surplus (CS) = Area between demand curve and world price  Producer surplus (PS) = Area…

Q: The U.S. and Canada both produce aircraft engines and tons of chemicals, which are sold for the same…

A: Absolute advantage in teade theory means producing more quantity that the other entity with the same…

Q: An average worker in Brazil can produce an ounce of soybeans in 20 minutes and an ounce of coffee in…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Consider the following model of trade between Home and Foreign. Assume throughout that those two…

A: The principle of absolute advantage states the ability of a party for production of a service or…

Q: Consider the following model of trade between Home and Foreign. Assume throughout that those two…

A: Under autarky, a country does not indulge in trade and has to be self-sufficient. The Home country…

Q: The Scenario : Suppose that the market for good X is small in Malaysia and in Thailand , relative…

A: For the exporting country, world price is always higher than the equilibrium price, which results in…