Demand and supply schedule for clothe

Assignment Help Business Economics

Reference no: EM132080669

Suppose that US market demand and supply for cloth are given, respectively, by the following algebraic equations: P = 8 - ½Q and P = 2 + ¼Q (P is given in dollars and Q in tons).

a) Plot the demand and supply schedule for clothe and determine the equilibrium price and quantity for cloth in the US in the absence of [international] trade.

b) If the US now allows free trade and P=$2.00 on the world market and we assume no transportation costs, how much cloth will the US consume, produce and import with free trade?

c) Now assume the US imposes a tariff of 50% on the world price, how much cloth will the US consume, produce and import with tariff?

d) How much tax revenues will the US government collect with trade restrictions?

e) How much is the consumer loss as a result of the tariff?

f) How much are the producer's gains and the society loss (deadweight loss) as a result of the tariff?

g) The benefits of trade liberalization are assumed to be great. Yet, Nations restrict International Trade. Why do they do that? Discuss.

Reference no: EM132080669

Questions Cloud

Cast of production at various production quantities : The following table shows the company's total cast of production at various production quantities.

Define situations in which you might accept a higher level : Researchers routinely choose an alpha level of 0.05 for testing their hypotheses. What are some experiments for which you might want a lower alpha level.

Logarithms of advertising and sales : Assess the description of the data provided by a model based on logarithms of advertising and sales.

Analyze the benefits afforded to health care marketers : Analyze the benefits afforded to health care marketers that understand the importance of establishing core values that guide health care organizations.

Demand and supply schedule for clothe : Plot the demand and supply schedule for clothe and determine the equilibrium price and quantity for cloth in the US in the absence of [international] trade.

Human thriving based on situational context of organization : How best to implement ways to make the workplace more conducive to human thriving based on the situational context of the organization.

Indicative of more complicated ones : The simple case of a fixed per-unit tax is indicative of more complicated ones. Consider a proportional sales tax and a progressive sales tax.

Analyze how it influences health care quality management : Post a brief description of the external force you selected. Then, analyze how it influences health care quality management.

Discuss about the role of personal health records : The My Health Record system was first introduced by the Australian Government in 2012 and allows people seeking health care in Australia to register.

User Account

All Pages