Calculate change in producer surplus for the foreign country

Assignment Help Business Economics

Reference no: EM13772541

Consider a large country importing good X in the international market. The country is large enough to influence the international price for good X. Let the initial international price of good X be $100, where the country imports 100 units and produces 10 units. The government decides to impose 30% tariff on good X to protect domestic producers and jobs. After the tariff, the country imports 80 units and produces 20 units. The price that foreign producers receive after the tariff (when they sell it to this country) is $85 (note that this price is different from the market price in this country).

A) Calculate the net national gain (or loss) for the country after the tariff.

B) Calculate change in producer surplus for the foreign country selling good X.

C) Calculate the dead weight loss for the world.

Reference no: EM13772541

Questions Cloud

According to the hazard communication standard : According to the Hazard Communication Standard, what employees need to be trained, and when do they need to be trained? Does OSHA require employees to be trained on each individual chemical to which they may be exposed? If not, what are the acceptab..

On grounds of equity and efficiency : The Nova Scotia government provides a rebate of the Provincial portion of the HST on home-heating fuel (oil, gas, electric) at point of sale. On grounds of equity and efficiency, evaluate this policy.

Historical evolution of cam : What is the difference between complementary, alternative, and integrative medicine? How does each type of medicine relate to conventional health care in the United States?

Describe personal items each arson investigator should carry : Describe the personal items each arson investigator should carry. What is the minimum number of personnel at an arson scene investigation? Why is that number important? Explain

Calculate change in producer surplus for the foreign country : Consider a large country importing good X in the international market. The country is large enough to influence the international price for good X. Let the initial international price of good X be $100, where the country imports 100 units and produce..

Removal service is a profit-maximizing-competitive firm : Barney’s snow removal service is a profit-maximizing, competitive firm. Barney clears driveways for $10 each. His total cost each day is $250, and half of his total costs are fixed. If Barney clears 20 driveways a day, should Barney operate or shut d..

Costs-fines or economic benefits of law : As an environmentalist, you are very interested in how economics plays a role in determining how many and what type of environmental laws are passed. There are many environmental laws that are determined by economic conditions.

Calculates the x point price elasticity of demand : IM’s utility function can be expressed as u(x, y) =?1/X + y and his monthly income is 10 DOLLAR. Given that price for X is P won and Y is 1 DOLLAR, Calculates the X point price elasticity of demand.

What policy implications can taken from results of maxwell : What did the results of Maxwell and Fagan's study show about the effects of arrest on the reoccurrence of intimate partner violence? What policy implications can be taken from the results of Maxwell and Fagan's study

User Account

All Pages