Reference no: EM133169978
Question - Consider two countries, home and foreign and a single good, Y. Assume that home country imports good Y from foreign country. The import demand curve for good Y in home country is given by: MD = 170 - 2PY and the export supply curve for good Y in Foreign country is given by: EX = PY - 40.
Part A. What is the free trade price of good Y? Show your work.
Part B. How many units of good Y are traded under free trade? Show your work.
Part C. If home country imposes a specific tariff of $15 per unit of good Y imported, what is the price of good Y that Foreign exporters receive? Show your work.
Part D. If home country imposes a specific tariff of $15 per unit of good Y imported, what is the price of good Y that Home consumers pay? Show your work.
Part E. If home country imposes a specific tariff of $15 per unit of good Y imported, how many units of good Y are traded now? Show your work.
Part F. If home country imposes a specific tariff of $15 per unit of good Y imported, what is the tariff revenue? Show your work.
Part G. Assume that instead of a specific tariff, an import quota will be used on good Y. What is the amount of the quota that will have identical effects (in terms of amount of good Y imports and the domestic price of good Y) as the specific tariff of $15? Explain your reasoning.
Part H. Consider the use of import tariff vs. import quota in Home country that will result in the same amount of good Y imports and the domestic price of good Y. If quota rents are given to Foreign country, which policy, i.e., import tariff vs. import quota, is preferable by Home country on the basis of its effect on social welfare? Explain your reasoning.
|
Discussion about the flow of products
: Question - Discussion about the flow of products, like the shortest-route problem, which is all about finding the shortest distance
|
|
What is the fixed cost per month of keeping the truck
: If the interest rate is 5%, which option will you choose? What is the fixed cost per month of keeping the truck for five years
|
|
Aesthetic and affective
: Address the considerations for planning meaningful activities in the AFFECTIVE and AESTHETIC domains of development.
|
|
Determine the carrying value of the patent at the end
: Acquired a patent for 895,550 that had been originally filed in January 2015. Determine the carrying value of the patent at the end of 2021
|
|
How many units of good y are traded under free trade
: The import demand curve for good Y in home country is given by: MD = 170 - 2PY and the export supply curve for good Y. How many units of good Y are traded
|
|
Create vision and plan for use of technology
: How does leadership create a vision and plan for the use of technology? How do faculty and staff ensure the safe use of technology?
|
|
Should cil accept the order and go ahead with the new mine
: Calculate the NPV, IRR, PI, and Payback Period for the project and comment of the financial viability. Should CIL accept the order and go ahead with new mine
|
|
How many payments will you have made
: You want to go to Europe in the future. So, you're prepared to make monthly payments of $500, How many payments will you have made
|
|
Social work-crisis intervention-panic attacks
: They are to be centered on a topic of interest related to Social Work, and there should be some connection of the topic to crisis intervention.
|