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PLEASE answer all parts and if possible draw graphs out by hand its much easier to read a. (0.5 points) Graphically depict Chad's market for
PLEASE answer all parts and if possible draw graphs out by hand its much easier to read
a. (0.5 points) Graphically depict Chad's market for pharmaceutical drugs in equilibrium when Chad is in isolation - that is, the domestic market for pharmaceutical drugs in Chad does not participate in the world market for pharmaceutical drugs. Label the equilibrium price and quantity P and Q, respectively. b. (1.5 points) Assume Chad enters the world market for pharmaceutical drugs. Say the world price of pharmaceutical drugs is lower than P. Graphically depict what happens in Chad's market for pharmaceutical drugs using the same graph as part (a). Clearly label each of the following: i. world price, PWORLD ii. quantity of pharmaceutical drugs purchased by Chad consumers, QDTD iii. quantity of pharmaceutical drugs produced and sold by Chad producers, QSTD vi. whether Chad is an importer or exporter of pharmaceutical drugs in the world market by labelling the quantity of net importset exports, QNETIMPORTS/QNETEXPORTS c. (2 points) Say that Chad's domestic pharmaceutical drug producers successfully lobby the Chad government to impose a tariff on pharmaceutical drug imports. Graphically depict what happens in Chad's market for pharmaceutical drugs using the same graph as parts (a)-(b). Clearly label each of the following: i. new effective world price, PWORLD+TARIFF ii. new quantity of pharmaceutical drugs purchased by Chad consumers, QDTTD iii. new quantity of pharmaceutical drugs produced and sold by Chad producers, QSTTD iv. quantity of net importset exports, QtariffNETIMPORTS/QtariffNETEXPORTS d. (0.5 points) In a separate graph, graphically depict the consumer surplus, producer surplus, and total surplus in Chad's market for pharmaceutical drugs after Chad imposes a tariff on imports. e. (0.5 points) Relative to part (b), where Chad trades pharmaceutical drugs with the world without a tariff, what happens to consumer surplus, producer surplus, and total surplus once the Chad government imposes a tariff on pharmaceutical drugs? a. (0.5 points) Graphically depict Chad's market for pharmaceutical drugs in equilibrium when Chad is in isolation - that is, the domestic market for pharmaceutical drugs in Chad does not participate in the world market for pharmaceutical drugs. Label the equilibrium price and quantity P and Q, respectively. b. (1.5 points) Assume Chad enters the world market for pharmaceutical drugs. Say the world price of pharmaceutical drugs is lower than P. Graphically depict what happens in Chad's market for pharmaceutical drugs using the same graph as part (a). Clearly label each of the following: i. world price, PWORLD ii. quantity of pharmaceutical drugs purchased by Chad consumers, QDTD iii. quantity of pharmaceutical drugs produced and sold by Chad producers, QSTD vi. whether Chad is an importer or exporter of pharmaceutical drugs in the world market by labelling the quantity of net importset exports, QNETIMPORTS/QNETEXPORTS c. (2 points) Say that Chad's domestic pharmaceutical drug producers successfully lobby the Chad government to impose a tariff on pharmaceutical drug imports. Graphically depict what happens in Chad's market for pharmaceutical drugs using the same graph as parts (a)-(b). Clearly label each of the following: i. new effective world price, PWORLD+TARIFF ii. new quantity of pharmaceutical drugs purchased by Chad consumers, QDTTD iii. new quantity of pharmaceutical drugs produced and sold by Chad producers, QSTTD iv. quantity of net importset exports, QtariffNETIMPORTS/QtariffNETEXPORTS d. (0.5 points) In a separate graph, graphically depict the consumer surplus, producer surplus, and total surplus in Chad's market for pharmaceutical drugs after Chad imposes a tariff on imports. e. (0.5 points) Relative to part (b), where Chad trades pharmaceutical drugs with the world without a tariff, what happens to consumer surplus, producer surplus, and total surplus once the Chad government imposes a tariff on pharmaceutical drugsStep by Step Solution
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