Equality of treatment provisions of the gatt

Assignment Help Business Economics
Reference no: EM132460842

The U.S. field a trade complaint against the European Union's Stabex program in the 1990s. The WTO subsequently ruled that Stabex violated the Equality of Treatment provisions of the GATT. The U.S. then imposed tariffs on a variety of European goods as a result.

Suppose the US market for gourmet cheeses is currently 16 million pounds, with a prevailing price of $10 per pound, with imports accounting for 50% of that. If the US imposes a $4 per pound tariff, total demand falls to 12 million pounds, with imports taking only 25% of the market. Illustrate this situation in a well drawn supply-demand curve, and calculate:

  • the loss in consumer surplus
  • the gain producer surplus
  • the tariff revenue
  • the dead-weight loss

Reference no: EM132460842

Questions Cloud

Explain the money multiplier : Explain the money multiplier and why the actual multiplier will be less than the theoretical maximum.
Deciding between developing complicated : Transcendent Technologies is deciding between developing complicated, thought-activated software, or simple, voice-activated software.
What is the value of cpi after the acquisition : Neither firm has any debt. The synergy value of the acquisition is R18 000. What is the value of CPI after the acquisition?
Discuss about typhoid mary and on woolworth lunch counter : "Typhoid Mary" and "On Woolworth lunch counter" Are these two issues the same? In the case of Typhoid Mary, do you think the Federal government
Equality of treatment provisions of the gatt : The WTO subsequently ruled that Stabex violated the Equality of Treatment provisions of the GATT. The U.S. then imposed tariffs on a variety of European goods a
Write the equation of the consumer budget constraint : Suppose you have $800 to spend on either concert tickets or CDs. Concert tickets cost $50 each, and CDs cost $20 each. Let T = the number of Concert Tickets
Why think callender claim fail to hurt jefferson politically : According to Eric Foner, how and why has the work of Annette Gordon-Reed fueled a controversy over the Hemings-Jefferson relationship?
What is the price of the bond if the market interest rate : What is the price of the bond if the market interest rate on similar bonds is 6%? What is the bond's current yield?
Determine present worth of 10 years of maintenance costs : The Highway Department expects the cost of maintenance for a piece of heavy construction equipment to be $5,000 in year 1, then increase

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd