How much revenue does the tariff raise for the govt

Assignment Help Econometrics

Reference no: EM13232002

Suppose the demand for computers by Taiwanese consumers is given by
P=6,000 - 2 D Q ,
where QD is the annual quantity of computers demanded and P is the price
per computer in dollars.
The supply of computers by domestic Taiwanese producers is P = 2 S Q , where QS is the annual quantity of computers supplied.

a. Assuming that that the Taiwanese economy is closed to trade, find the equilibrium ```price and quantity in the Taiwanese computer market.

b. Assume the economy opens to trade. If the world price of computers is $1,500, find annual Taiwanese consumption, production, and imports of computers.

c. At the request of domestic producers, the Taiwanese government imposes a tariff of 500 per imported computer. Find Taiwanese consumption, production, and imports of computers after the imposition of the tariff. How much revenue does the tariff raise for the government.

Reference no: EM13232002

Questions Cloud

Describe the dna polymerase : Why do mutations that inactivate the 3'-5' exonuclease activity of DNA polymerase III greatly increase the frequency of mutations

Demonstrate an understanding of enterprise systems : Demonstrate an understanding of enterprise systems? Analyse some key factors that bolster successfulinformation systems change?

Explain concentration of the sodium hydroxide : You titrated 1.740 g of a solid unknown acid that was dissolved in 100.0 mL of distilled water; the initial pH value was 2.5. You found that pH=pKa=4.2 when 12.50 mL of NaOH had been added. The concentration of the sodium hydroxide was 0.500 M.

Which style did you find most effective : Think back to teachers you have had, and identify one each who fits a supportive style, directive style, participative style, and achievement-oriented style according to the path-goal theory. Which style did you find most effective? Why?

How much revenue does the tariff raise for the govt : At the request of domestic producers, the Taiwanese government imposes a tariff of 500 per imported computer. Find Taiwanese consumption, production, and imports of computers after the imposition of the tariff. How much revenue does the tariff rai..

Assesses the organization overall alignment : As a new leader, you must prepare a report for the CEO that assesses the organization's overall alignment between its vision, mission, values, and strategy. This report should consist of the following sections:

Research approaches to ensuring a hiring process : Research approaches to ensuring a hiring process that complies with legal requirements for an equitable workplace and design elements

Use ad-as analysis to show the two impacts on real gdp : In early 2001, investment spending sharply declined n the U.S.. In the two months following the Sept. 11,2001 attacjs on the U.S., consumption also declined. Use AD-AS analysis to show the two impacts on real GDP.

Depict a 3-dimensional sketch using dashes and wedges : Draw a 3-dimensional sketch, using dashes and wedges. Be sure to show all atoms (no line drawings), to draw pi bonds (with sets of overlapping p orbitals) and to include the orientation of lone pairs of electrons.

User Account

All Pages