The US government increases the tax on steel imported from China. Such taxes exemplify a(n) O subsidy. O tariff, referendum. antidumping policy. O local content requirement.
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- In the world market, a pair of shoes from China is sold for $40 and that from Mexico is $50. U.S. made shoes are $70 a pair. Initially U.S. does not belong to any free trade agreement and imposes an ad valorem tariff of 30%. Later, the U.S. joins a free trade agreement with Mexico and remove all trade barriers including tariffs. The import demand function for the U.S. is Q = 280 – 4P. (Hint: Draw the import demand curve of the world market as shown in the examples on the textbook and lecture slides.) 13. How much will the U.S. government tariff revenue change (as a result of this free trade agreement? а. Increase by $144 O b. Decrease by $720 C. Decrease by $800 O d. Decrease by $864The increase in prices resulting from the levy of import duty usually reduces the consumption capacity of thepeople. True FalseWhich of the following would benefit producers, harm consumers and reduce total surplus? Opening of a market to trade when the world price is lower than the domestic price. Decrease of a subsidy. OOOO Increase of a tariff. None of these.
- example of subsidy in the philippinesQuestion 6 A market has a demand function given by the equation Qd = 180 – 2P, and a supply function given by the equation Qs = -15 + P. The market is government-regulated with a price support per unit and production quotas. (NOTE: A production quota is a restriction on the quantity of the good that can be produced. Firms are not allowed to %3D %D produce more than the quota) (a) If the price is set at $72 per unit, what production quota is needed to make sure there are no shortages or surpluses? HINT: Sketch the supply and demand equations. Answer:This assignment is to test your understanding of Demand & Supply. Each question should be answered in your own words accompanied by a diagram showing what is happening to demand & supply. Please use graph paper for your diagrams. In September of 2006 Hurricane Chantel hit Florida and caused over a billion dollars in damage to homes and businesses, infrastructure, etc. At the same time the province of BC was recovering from a forest fire season that destroyed millions of hectares of forest. Explain the impact these natural disasters had on the demand for, supply of, and price of lumber in North America. Using the information below prepare a graph to clarify your answer starting at equilibrium. The change in quantity of supply or demand is 1,000,000 board feet for each of the aforementioned shocks. What is the new equilibrium?
- A subsidy is defined as a direct government payment to domestic producers government pension plan for domestic producers O a government savings account for domestic producers a small business loan to farmersOnly solve d and e (d)Calculate the deadweight loss from this subsidy. (e) Will the government’s subsidy meet its objective?Price(per bottle) Quantity supplied Normal timesquantity demanded Hurricanequantity demanded $6 100 25 75 $5 85 35 85 $4 70 45 95 $3 55 55 105 $2 40 65 115 $1 25 75 125 Concerned with citizen complaints of price gouging during past hurricanes, Florida's state government passes a law setting a price ceiling for a bottle of water equal to the market equilibrium price during normal times. After all, it seems unfair that sellers of water gain because of a hurricane. During a hurricane, there would be a shortage of bottles of water. Without the antiprice gouging law, consumers would have to pay $ more than the ceiling price, but they would be able to buy more bottles of water.
- For years the governments of the European union have subsidized the production of Airbus planes.Boeing and Airbus are fierce competitors .show graphically and explain how the European subsidies have affected for Boeing planes.The United States government has toughened trade sanctions against Russia following its invasion of Crimea. The main political argument for this action is to protect human rights protect US jobs and industries protect consumers from unsafe products protect national security further US foreign policy objectives US farm subsidies are most likely to have the biggest negative impact on farmers in France Canada Japan Kenya Italy O O OThe demand and supply curves for a product are given in terms of price, P , by 3400 – 30p and 9 = 10p – 600. (a) Find the equilibrium price and quantity. The equilibrium price is 2$ and the equilibrium quantity is units. (b) A specific tax of $16 per unit is imposed on suppliers. Find the new equilibrium price and quantity. The new equilibrium price (including tax) is $ and the new equilibrium quantity is units. (c) How much of the $16 tax is paid by consumers and how much by producers? The tax paid by the consumer is $ and the tax paid by the producer is 2$ of the tax. (d) What is the total tax revenue received by the government? The total tax revenue received by the government is
