Q imports of peanuts into the united states are subject to

Assignment Help Business Economics

Reference no: EM13354348

Q. Imports of peanuts into the United States are subject to a quota, set at about 1.7 million pounds per year.
a. Illustrate the free-trade equilibrium in the market for peanuts. Then show the quota's effects on domestic consumption, domestic production, imports, and price. Label carefully.

b. What are the quota's welfare effects, including both the distributional effects and the overall (net) effect on the United States? Relate the effects to your diagram in part (a).

c. In 1990, a severe drought hit Georgia, where most U.S. peanuts are grown. Illustrate the effects of the drought, assuming that policy makers don't change the quota. What happens to domestic production, domestic consumption, imports, and price as a result of the drought?

d. Assume that the United States is a small country in the peanut market. Now suppose that the peanut market is subject to an import tariff instead of the quota. The tariff is set at a level that results in the same pre-drought level of production, consumption, and price as
under the quota in part (a). Illustrate the effects of the tariff before the drought.

e. Compare the effects of the drought under the tariff with those under the quota. What are the similarities and differences?"

Reference no: EM13354348

Questions Cloud

Q1 wire carries a stable current of 260 a a straight : q1. wire carries a stable current of 2.60 a. a straight section of the wire is 0.750 m long and lies along the x axis

Q1 a horse races once around a circular track in a time of : q1. a horse races once around a circular track in a time of 118s with a speed of 17 ms. what is the radius of the

Q1 george of the jungle with mass m swings on a light vine : q1. george of the jungle with mass m swings on a light vine hanging from a stationary tree branch. a second vine of

Q1 from the shape of total energy vs time plot what can you : q1. from the shape of total energy vs. time plot what can you conclude about the conservation of mechanical energy in

Q imports of peanuts into the united states are subject to : q. imports of peanuts into the united states are subject to a quota set at about 1.7 million pounds per year.a.

Qthink of another good that you have purchased recently or : q.think of another good that you have purchased recently or you could continue with the good you selected in tda i. be

Q1 apparent motion is dependent on factors other than isi : q1. apparent motion is dependent on factors other than isi. describe the various factors that would affect ones ability

Q1 a bumper car with mass m1 108 kg is moving to the right : q1. a bumper car with mass m1 108 kg is moving to the right with a velocity of v1 4.6 ms. a second bumper car with

Q now that you have learned some of the basic principles of : q. now that you have learned some of the basic principles of organization pause and think of where you have already

User Account

All Pages