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Now the Home government decides to impose a per unit tariff on the imports of good it from Foreign of 51.25 per unit of imported good all. tariff is simplv a tax on the imports of the good - Home producers of good it do net have a tariff on their goods. Like a tax, this means the price the Home consumers pav for the imported good with the tariff [call it pT} is not the price the Foreign producers get for exporting it to Home [call it pf} the difference being the tariff. Find pT and pF such that Home's demand for imports of good a eouals foreign's export supplvr of good a and determine the burden of the tariff on the Home consumers and the Foreign producers. [5] ENGMf-Jll 2021 Assignment 3 Since this is a competitive market, the Home producers of good it also charge pror good it. Find the amount of good it that Home produces and the amount that Home consumes at price pT. [2} Comparing the outcome with the tariff to the outcome with no tariff, evaluate the welfare effects of the tariff on the Home nation; namelv: [B] i. Use Consumer Surplus to nd how much the Home consumers are better or worse off from the tariff. ii. Use Producer Surplus to find how much the Home producers are better or worse off from the tariff. iii. Find how much the Home nation's Social Benefit changed ie how much the Home nation overall is better or worse off from the tariff. II Submit you work through googie class-room (instruction attached). 0 You must provide graph aiong with the explanation, ifthe question asksfor it. Question I. (a) Consider the mobile banking industry of Bangladesh. Which type of market structure can explain the market mechanism in this industry? Provide three reasons in support of your answer. (5) (b) Under what circumstance the mobile-banking industry of Bangladesh might behave like a monopoly market? Explain why. (5) Question 2. (3) Explain three types of price discrimination and provide one example of each type of price discrimination. (5) (b) In which case a prot-maximizing monopolist will be resource-allocative efcient? Explain your answer. (5) Question 3. Suppose initially there is a monopolistically competitive rm earning positive prot in the market. How will the market adjust to a new long-nut equilibrium? Explain and provide adequate graph to supplement your answer. (5) Question 4. (a) Explain the concept of consumer equilibrium in terms of the Equi-marginal principle, Provide appropriate graph for explaining you answer (5) (b) Suppose you have a budget of 1000 take. The price of one unit of X is 20 taka, and the price of one unit of Y is 10 taka. If X provides you utility and Y gives you disutility, what is the equilibrium amount of X and Y for the consumer? Explain your answer using appropriate graph. (5) Tariff on Imported Good a. Suppose the oountry Home has the following demand and supply functions for a good 3: [you may assume the price p will be such that neither supply nor demand are negative}; Home Supply: (E; = 4-D + 3p Home Demand: 03 = SD 2p Home production of the good is not enough to satisfy the Home demand, so Horne also imports good it from Foreign. Dene Home's import demand for good it. little as Import Demand: or = of: of; Write the import demand equation lid in terms of the price. 11} h. Suppose the oountry Foreign has the following demand and supply functions for the good I {you may assume the price p will be such that neither supply nor demand are negative}: Foreign Supply: {23 = All] + 10p Foreign Demand: Q? = 1M! - lp Dene Foreign's export supply of good it, Fit. as Export Supply: EX = Q Q}? Write the export supply equation Ex in terms of the prioe. 11} c. Find the price such that Home's demand for imports of good a equals Foreign's export supply of good a. Denote this price as p""r [world price]. [2} d. Since this is a competitive market, the Home producers of good 3t also charge p'\"r for good it. Find the amount of good if. that Home produces and the amount that Home oonsu mes at price p\". 12}