Calculate change in consumer surplus and producer surplus

Reference no: EM13218557

A small nation permits free trade in good X. At the good's free-trade price of $8, domestic firms supply 6 million units and imports account for 4 million units. Recently the small country has ereted trade barriers with the result that imports have fallen to zero, price has risen to $10, and domestic supply has increased to 8 million units. Calculate the change in consumer surplus and producer surplus resulting from the trade barrier. What is the deadweight loss?

Reference no: EM13218557

Questions Cloud

Estimate how much people were at the event : These sections had about 1000 people. There were 10 of these sections in the picture. The other 10 sections had people standing further apart. These sections contained about 500 people each. How many people would you estimate were at the event?

Professional development plan : A Project Manager may manage his professional development plan. When managing his professional development plan, the project manager may also manage his profile.

What are the benefits and detriments of each system : Describe the difference between the specialist, market maker and electronic system for trading stocks. What are the benefits and detriments of each system How is the difference between the real estate market and the financial markets reflected in ..

Determine the impact of the proposed govt policy on business : Suppose you are the manager of a home-building company and the government is considering eliminating the deduct-ability of mortgage interest payments. A Typical consumer's marginal tax rate is 25% and the elasticity of demand for new homes is -1.5..

Calculate change in consumer surplus and producer surplus : A small nation permits free trade in good X. At the good's free-trade price of $8, domestic firms supply 6 million units and imports account for 4 million units. Recently the small country has ereted trade barriers with the result that imports hav..

Find the probability that receiver makes a decoding error : The receiver takes the three received bits and decides which bit was sent by taking the majority vote of the three bits. Find the probability that the receiver makes a decoding error.

Calculate the number of calls : i) Calculate the number of calls/hour/cell and the number of calls/hours/km2 ii) Calculate the number of users/hour/cell and the number of users/hours/channel iii) Find the modulation frequency for this system.

Determine the equilibrium price and quantity : In a given marker, demand is described by the equation QD=1800-10P and supply is described by QS=200+10P. A. Determine the equilibrium price and quantity. B. Determine the surplus or shortage that would exist if the price was set at $60 by the state.

What is the approximate area of the same chip : For a chip area with area 2cm x 2cm in a 180nm logic technology, what is the approximate area of the same chip when ported to a 32nm logic technology.

User Account

All Pages