Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose the Canadian demand for and the Japanese supply of cars to Canada is shown in the table below (quantities in thousands). Quantity Quantity Supplied

image text in transcribed
Suppose the Canadian demand for and the Japanese supply of cars to Canada is shown in the table below (quantities in thousands). Quantity Quantity Supplied Quantity supplied Price ($) Demanded (before tariff) (after tariff) 9 , 000 200 80 10, 000 180 100 11, 000 160 120 12, 000 140 140 13, 000 120 160 14, 000 100 180 15, 000 80 200 16, 000 60 220 a) The present equilibrium price is $ and quantity is thousands. b) Suppose that the Canadian government imposes a $2,000 per car tariff on imported Japanese cars. Show the new supply in the las column above. c) The new equilibrium price is $ and quantity is thousands. d) The total revenue received by the government will be $ million. e) Assume, instead, that the government imposes an import quota of 120,000 cars. The new equilibrium price is $ and quantity is (thousand). f) Does the government now receive any revenue? (Click to select) v

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics

Authors: N Gregory Mankiw

9th Edition

1464182892, 9781464182891

More Books

Students also viewed these Economics questions

Question

Discuss Machiavellis importance to the history of psychology.

Answered: 1 week ago

Question

What is meant by formal organisation ?

Answered: 1 week ago

Question

What is meant by staff authority ?

Answered: 1 week ago

Question

Discuss the various types of policies ?

Answered: 1 week ago

Question

Briefly explain the various types of leadership ?

Answered: 1 week ago

Question

Make eye contact when talking and listening

Answered: 1 week ago

Question

Do not go, wait until I come

Answered: 1 week ago

Question

Pay him, do not wait until I sign

Answered: 1 week ago