Question
In: Economics
Suppose there is an import quota on sugar. The inverse demand for sugar is P=100-2QD. The...
Suppose there is an import quota on sugar. The inverse demand for sugar is P=100-2QD. The inverse supply for sugar is P=20+2QS. The world price (Pw)= 30 usd/lb. There is a quota set at 20 million/lbs of sugar. P is in Usd/lb.
A) What is the purpose of this policy?
B) Create a graph to demonstrate the impact of the sugar import quota. Include labels and units on both axis.
C) Explain the consequences of this policy, and who supports this policy politically
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
Demand: P = 100-2Qd+I Supply: P = 15 + 3Qs Suppose that consumer income (I) is...
Demand: P = 100-2Qd+I
Supply: P = 15 + 3Qs
Suppose that consumer income (I) is 15. Using excel
plot how the tax revenue changes as T increases. HINT: Revenue will
be on your y axis and the tax (0,1,2,3,…) will be on your
x-axis. Find the revenue maximizing tax. What would be
the tax revenue generated and the quantity of goods sold at this
tax rate.
A) Why US is having an import quota of sugar and what is its impact on...
A) Why US is having an import quota of sugar and what is its
impact on US domestic production?
B) What is the impact of an import quota on the sugar price in
US and why consumers are not opposing this?
Explain in detail.
Suppose that budding economist Buck measures the inverse demand curve for toffee as P = $100...
Suppose that budding economist Buck measures the inverse demand
curve for toffee as P = $100 –
QD , and the inverse supply curve as
P = Qs. Buck’s economist
friend Penny likes to measure everything in cents. She measures the
inverse demand for toffee as P = 10,000 –
100QD, and the inverse supply curve as
P = 100Qs.
a. Suppose market participants successfully lobby congress for a
$45 price ceiling. What is demand at $45? What is supply...
Suppose that the retail market for widgets has inverse demand curve P = 100 – Q....
Suppose that the retail market for widgets has inverse demand
curve P = 100 – Q. Widget retailing is controlled by a monopoly
retailer, R Inc., which obtains its widgets from the monopoly
wholesaler W Inc. at a wholesale price of w per widget. In addition
R Inc. incurs a cost of $2 per widget to promote the product and
sell to consumers. Wholesaler W Inc. obtains the widgets in from
monopoly manufacturer M Ltd. at a manufacturing price of...
Suppose the inverse market demand equation is P = 95 – 10Q and the inverse market...
Suppose the inverse market demand equation is P = 95 – 10Q and
the inverse market supply equation is P = 5 + 5Q. A price floor of
$85 will result in:
a. a shortage of 10 units.
b. a shortage of 15 units.
c. a surplus of 10 units.
d. a surplus of 15 units.
e. None of the above.
Suppose a first degree price discriminating monopolist has an inverse demand curve of P=100-2Q and a...
Suppose a first degree price discriminating monopolist has an
inverse demand curve of P=100-2Q and a marginal cost curve of
MC=10+4Q. Assume fixed costs are zero. What is the firm's maximum
profit?
The private demand curve for flu shots is: P = 18 – 2Qd The social demand...
The private demand curve for flu shots is: P = 18 – 2Qd
The social demand curve for flu shots is: P = 21 – 2Qd
The private and social supply curve for flu shots is: P = 3 +
Qs
a) Draw a supply and demand model
of the market for flu shots.
b) Is there an externality in this
market, if yes, is it positive or negative?
c) Does the private market provide
too many or too few...
The private demand curve for flu shots is: P = 18 – 2Qd The social demand...
The private demand curve for flu shots is: P = 18 – 2Qd
The social demand curve for flu shots is: P = 21 – 2Qd
The private and social supply curve for flu shots is: P = 3 +
Qs
a) Draw a supply and demand model
of the market for flu shots.
b) Is there an externality in this
market, if yes, is it positive or negative?
c) Does the private market provide
too many or too few...
Suppose the inverse demand and inverse supply functions for a good are given as P= 200-0.5Q...
Suppose the inverse demand and inverse supply functions for a
good are given as P= 200-0.5Q
and P= 20 + 0.5 Q.
Calculate the initial equilibrium price and
quantity.
Draw the above inverse demand and inverse supply
functions.
Suppose a per unit tax of $10.00 was levied on sellers.
Determine graphically and algebraically the effect of the tax on
the price paid by demanders, the price received by sellers, the
total tax paid, and the fraction of the tax paid...
Small country quota Suppose Canada places a quota on the import of steel, which reduces its...
Small country quota
Suppose Canada places a quota on the import of steel, which
reduces its steel imports, but does not stop them completely.
a) Draw a diagram to illustrate the change in Canada’s steel
market, moving from free trade to the quota.
b) Based on your diagram, compare Canada’s welfare if it
distributes the quota by auction with Canadian welfare if the quote
is distributed by a VER.
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