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Question 1: Suppose the market for semiconductors in the U.S. is characterized by
Qd = 200 - 40P [Demand]
Qs = 40 + 40P [Supply]
The market for semiconductors in the rest of the world is characterized by:
Qd = 160 - 40P [Demand]
Qs = 80 + 40P [Supply]
Suppose the U.S. government imposes a quota of 24 million units on its imports of semiconductors. Calculate the magnitude of the deadweight loss resulting from the quota under the assumption that the U.S. is a small open economy. [Note: P = price per unit; Qd = millions of units demanded; Qs = millions of units supplied]
Question 2: Suppose the market for wine in the U.S. is characterized by
The market for wine in the rest of the world is characterized by:
Calculate the change in deadweight loss if the U.S. replaces a prohibitive tariff per unit on imported wine by an equal production subsidy per unit of wine sold by U.S. producers. [Note: P = price per unit; Qd = billions of units demanded; Qs = billions of units supplied]
Suppose the demand for computers. For each of the following, state effect on demand, find the equation of the demand curve if consumer incomes are $30,000,
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If the government imposes a $1 per-unit tax, how do the marginal, average total, and average variable costs change? What if instead the government imposes a $100 per-firm tax?
Suppose there is a market for an industrial compound, Weon. This industrial compound is used as an input for production of cleaning agents.
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