Housing boom on the us price of furniture

Assignment Help Business Economics
Reference no: EM131457183

The United States has a comparative disadvantage in furniture production, and much of the furniture sold in the United States comes from abroad, especially from China. A multiyear housing boom increased the demand for furniture as families moved into new and bigger houses. Assuming that the United States is a small country in the world furniture market, answer the following

If there are no barriers to trade, what would you expect to be the effect of the housing boom on the U.S. price of furniture, the quantity produced and consumed, and the quantity imported? Explain and illustrate.

Suppose now that, before the housing boom, the U.S. had a specific tariff on imported furniture. What is the effect of the housing boom in this case? Explain and illustrate.

Reference no: EM131457183

Questions Cloud

Determine the effects of differential taxation : Risk differences among assets mask the effects of differential taxation on returns. If we know the required after-tax risk premiums on assets.
Marginal physical product of labor : How does capital investment affect the marginal physical product of labor? Does more college education have the same kind of effect?
Project work on marketing management : Which of the philosophies discussed, do you think, is adopted by the bank. Substantiate your arguments with clear evidences. What should the company do to appeal to the customers?
Looking for a doxazosin : Today's careers for graduates having a degree in pharmacy may be different than the existing time druggist who not merely whipped up cough .
Housing boom on the us price of furniture : Suppose now that, before the housing boom, the U.S. had a specific tariff on imported furniture. What is the effect of the housing boom in this case?
Could the risk-adjusted before-tax rate of return : Capital investment in many countries is tax favored. For example, in 1989, Singapore allowed a 100% tax depreciation write-off in the year of purchase.
Choose a product or service you currently consume : Choose a product or service you currently consume/use, such as apparel or educational services, that is included in the CPI's "market basket."
Discuss any attempts to incorporate the solution : Evaluate what the literature suggests as a resolution to your chosen issue.Discuss any attempts to incorporate the solution into public policy.
Economic theory or concept are you going to test : Give an economic intuition for why you expect the experiment to work. What economic theory or concept are you going to test?

Reviews

Write a Review

Business Economics Questions & Answers

  Domestic interest rate is greater than foreign interest rate

Suppose the interest parity condition holds and that the domestic interest rate is greater than the foreign interest rate. What does this imply about the current versus future expected exchange rate? Explain. Suppose the one-year nominal interest rat..

  What does risk and risk management mean to you

What does risk and risk management mean to you? How would organizations benefit from having a formal risk management program (especially for IT and security)?

  Percentage of the population engaged in ideas formation

Consider the Romer model. If the percentage of the population engaged in ideas formation (l) (bar) decreases, what are the short and long term impacts of this shift on Y?

  In supply and demand theory

In supply and demand theory, an increase in consumer income for a normal good will:

  Compute the real gdp per person for this nation

Compute the real GDP per person for this nation in 2001, in 2000 euros per person. Round your answer to the nearest euro.

  Explain how much in excess reserves does abc holds

Suppose the T-account for ABC bank is as follows: assets: reserves($150000), loans(250,000)and deposits $400,000.if the fed requires banks to hold a 10 percent of deposits as reserves explain how much in excess reserves does ABC holds.

  Is there a shortage of on-campus parking at your school

What would happen in the apple market if the government set a minimum price of $2.00 per apple? What might motivate such a policy? Is there a shortage of on-campus parking at your school? How might the shortage be resolved? (William Paterson Universi..

  Demand for its product comes from two types of customers

A firm has estimated that the demand for its product comes from two types of customers, type I and type II. Each type I customer -there are 30 of them- has a demand curve given by Q = 20 - P, while each type II customer -there are 50 of them- has a d..

  Find the us international trade policies

Does NAFTA affect the automobile industry's decisions on what to do with labor and capital costs? If so, how? In your opinion, was this trade agreement good for the United States and Mexico from an economic standpoint?

  Tariff on imports of a product hurts domestic consumers

A tariff on imports of a product hurts domestic consumers of this product more than it benefits domestic producers of the product. Do you agree or disagree with this statement, and why?

  Recent decades americans have increased their purchase

In recent decades Americans have increased their purchase of stocks of foreign base companies.

  Equilibrium and operating at full employment

Use the AS/AD framework to depict an economy that is a) in equilibrium, and b) operating at full employment. Now suppose that the Business Sector decides to increase the Price Level it desires to charge, at any and every given level of production: La..

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