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I need help with these 4 microeconomics questions: Question 10. Tariffs and Quotas (1.2 marks) Use the following information to answer the questions below. The
I need help with these 4 microeconomics questions:
Question 10. Tariffs and Quotas (1.2 marks) Use the following information to answer the questions below. The domestic demand and domestic supply behavior for MP4 players in a small closed economy are given by the following functions: Supply: P = 3QS+2 Demand: P = - QD+ 102 I. Closed Economy (no trade) Question 1 (0.2 points) Calculate the value of consumer surplus (CS) and producer surplus (PS) for the MP4 player market in this small closed economy. CS =$[Blank 1], PS = $[Blank 2]. Round off your answer to two decimal places. Graph A: MP4 Player Market (no trade) 125 Supply. P = 3Qs + 2 102 100 75 Price 50 Demand: P = - Qd + 102 25 ON O 20 25 40 Quantity Blank # 1 Blank # 2Il. Open Economy to Free Trade. Use the following information to answer questions a) ~ d). Suppose that this small closed economy is open to free trade and that the world price is $62 per MP4 player. Graph B: MP4 Player Market (w/free trade) 125 Supply: P = 3Qs + 2 102 Price 100 77 75 Pw = 62- 50 Demand: P = - Qd + 102 25 ON O 20 25 40 QuantityQuestion 2 (0.4 points) a-d. a. What is the quantity supplied by domestic producers? [Blank 1] b. What is the quantity demanded by domestic consumers? [Blank 2] c. How many MP4 players will the country import or export with free trade in play? They will [Blank 3: type either "import" or "export"] [Blank 4] units. d. Shade the area of the consumer surplus (CS) and producer surplus (PS) after the economy opens to free trade on Graph B above. Calculate the value of consumer surplus (CS) and producer surplus (PS). CStrade = [Blank 5] and Pstrade =[Blank 6] Blank # 1 Blank # 2 Blank # 3 Blank # 4 Blank # 5 Blank # 6Ill. Open Economy to Trade (with Tariff) Use the following information to answer questions a) ~ i). Suppose that the government enforces a tariff of $6 on each imported MP4 player, and the world price is $62 per MP4 player. Graph C: MP4 Player Market (w/Tariff) 125 Supply: P = 3Qs + 2 Price 102 100 77 75 Ptariff = 68 Pw = 62 50 Demand: P = - Qd + 102 25 ON 0 Qsdom = ? 20 25 Od = ?40 QuantityQuestion 3 (0.3 points) Round off your answer to the nearest integer a. What is the quantity supplied by domestic producers after the tariff's implementation? [Blank 1]. b. What is the quantity demanded by domestic consumers after the tariff's implementation? [Blank 2]. c. How many MP4 players will the country import or export after the tariff's implementation? [Blank 3; type either "import" or "export"] [Blank 4] units d. Calculate the value of consumer surplus (CS) and the value of producer surplus (PS) for the MP4 player market after implementing the tariff. CS w/Tariff = [Blank 5] PS w/Tariff = [Blank 6] . e. Calculate the value of total tariff revenue. Tariff Revenue = [Blank 7]. f. Calculate the dead weight loss. DWL = [Blank 8]. g. Rank the consumer surplus (CS) for the three scenarios below from the highest to the lowest: Option 1: the MP4 player market without trade. Option 2: the MP4 player market with free trade. Option 3: the MP4 player market with the tariff. Highest: Option [Blank 9: type either "1","2",or"3"] Lowest: Option [Blank 10: type either "1","2",or"3"] h. Rank the producer surplus (PS) for the three scenarios below from the highest to the lowest: Option 1: the MP4 player market without trade. Option 2: the MP4 player market with free trade. Option 3: the MP4 player market with the tariff. Highest: Option [Blank 11: type either "1","2",or"3"] Lowest: Option [Blank 12: type either "1","2",or"3"] Blank # 1 Blank # 2 Blank # 3 Blank # 4 Blank # 5 Blank # 6 Blank # 7 Blank # 8 Blank # 9 Blank # 10 Blank # 11 Blank # 12 IV. Open Economy to Trade (w/Quota) Use the following information to answer question a) ~ j). Suppose that the government introduces a quota allowing imports of 8 units instead of introducing tariffs. Suppose that the world price is $62 per MP4 player. Graph D: MP4 Player Market (w/Quota) 125 Supply: P = 3Qs + 2 Price 102 100 8 18 75 Pw = 62. 50 Demand: P = - Qd + 102 25 ON 0 20 25 40 QuantityQuestion 4 (0.3 points) Round off your answer to the nearest integer a. What is the quantity demanded by domestic consumers after the quota's implementation? [Blank 1]. b. What is the quantity supplied by domestic producers after the quota's implementation? [Blank 2]. c. How many MP4 players will the country import or export after the quota's implementation? [Blank 3: type either "import" or "export"] [Blank 4] units. d. Calculate the value of consumer surplus (CS) and the value of producer surplus (PS) for the MP4 player market after introducing the quota. CS w/Quota = [Blank 5]. PS w/Quota = [Blank 6]. e. Determine the value of total license holder revenue. License Holder Revenue = [Blank 7]. f. Determine the dead weight loss. DWL = [Blank 8]. g. Rank the consumer surplus (CS) for the three scenarios below from the highest to the lowest: Option 1: the MP4 player market without trade. Option 2: the MP4 player market with free trade. Option 3: the MP4 player market with the quota. Highest: [Blank 9: type either "1", "2", or "3"]. Lowest: [Blank 10: type either "1", "2", or "3"]. h. Rank the producer surplus (PS) for the three scenarios below from the highest to the lowest: Option 1: the MP4 player market without trade. Option 2: the MP4 player market with free trade. Option 3: the MP4 player market with the quota. Highest: [Blank 11: type either "1", "2", or "3"]. Lowest: [Blank 12: type either "1", "2", or "3"]. i. If the government wants to use the quota policy to attain the equilibrium quantity equal to the domestic quantity demanded under the $6 tariff policy in a), what should the quota be set to in order to achieve this goal? Blank # 1 Blank # 2 Blank # 3 Blank # 4 Blank # 5 Blank # 6 Blank # 7 Blank # 8 Blank # 9 Blank # 10 Blank # 11 Blank # 12 Blank # 13Step by Step Solution
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