What is the equilibrium quantity and price

Assignment Help Macroeconomics
Reference no: EM131326163

A large country named H is considering an export subsidy to promote the industry that produces good X. The country's excess supply curve is P=2000+2X. The world's excess demand curve is P=5000-10X.

a.) What is the equilibrium quantity and price of X prior to any tariff? (May be fractions of a unit.)

b.) What is the total worldwide economic surplus prior to any tariff?

Now suppose the country imposes a export subsidy of 15% of the value the domestic producers receive from any exports.

c.) What is the equilibrium quantity sold after the subsidy? (May be fractions of a unit.)

d.) What is the effective price (this includes the subsidy) that domestic producers receive for X exports? What price do consumers consumers in the rest of the world pay for X?

e.) What is the worldwide deadweight loss due to the subsidy?

f.) What is the producer surplus after the subsidy? What is the "Terms of Trade" loss for H due to the subsidy?

Reference no: EM131326163

Questions Cloud

Compute intrinsic values and time values and lower bounds : Identify any profit opportunities that may exist. Treat these as American options for purposes of determining the intrinsic values and time values and European options for the purpose of determining the lower bounds.
Identify any profit opportunities that may exist : Compute the intrinsic values, time values, and lower bounds of the following puts.- Identify any profit opportunities that may exist.
Paper - benefits to cloud computing using specific examples : In a one- to two-page paper (250-500 words), discuss whether or not there are cost benefits to cloud computing using specific examples. Be sure to include at least three reference sources
Rules regarding relationships between american options : Determine whether any violate the rules regarding relationships between American options that differ only by exercise price.
What is the equilibrium quantity and price : A large country named H is considering an export subsidy to promote the industry that produces good X. The country's excess supply curve is P=2000+2X. The world's excess demand curve is P=5000-10X. a.) What is the equilibrium quantity and price of..
Rules regarding relationships between american options : Determine if any violate the rules regarding relationships between American options that differ only by exercise price.
Budget constraint showing the trade-off : A college student has two options for meals: eating at the dining hall for $6 per meal, or eating a Cup O'soup for $1.50 per meal. His weekly food budget is $60.
Calculate the thermal efficiency : This is called preignition. Take r equal to 9 and, ϒ equal to approximately 1.3 (because it is a mixture) and calculate the thermal efficiency.
Building non-trivial database-backed web application : Goal - To enable students to experience the process of building a non-trivial database-backed web application. Develop an ER diagram for your chosen area - use Oracle SQL Developer Data Modeler

Reviews

Write a Review

Macroeconomics Questions & Answers

  Description of sustainability first

Reflecting back on what you learned about sustainable management practices throughout this quarter; determine 5 activities that illustrate sustainable management of resources that you pursue in your everyday life.

  Question regarding the reduction in taxes

1) Other things being equal, a reduction in taxes will 2) According to supply side economists, lower marginal tax rates will not necessarily lead to lower tax revenues because

  How might democratic states avoid a protectionist backlash

Are global 1 trade2 patterns consistent with economic theory? How might democratic states avoid a 'protectionist backlash' against free trade

  This chapter argued that saving and spending behavior

this chapter argued that saving and spending behavior depended in part on wealth accumulated savings and inheritancebut

  Comparative advantage and decide to trade

Nettie can produce either 8 cupcakes or 4 hamburgers. Becky can produce either 4 cupcakes or 8 hamburgers. Suppose that Nettie and Becky each specialize in the production of the good for which they have a comparative advantage and decide to trade.

  Descriptive analysis of how decontrol of price

Suppose a product sold in a competitive market is subject to a government price control. Suppose the regulated price is less than the free market equilibrium price.

  Conditions of an efficient resolution to dispute

Externalities. My daughter lived across from an apartment building filled with Haverford College students who party through the night and make it hard for her to sleep, and harder for her to get up for work in the morning a. What are the condition..

  When to make the decision to outsource or integrate forwards

Aside from maximizing profits, assess the factors that managers must consider when making the decision to outsource or integrate forwards or backwards considering which factor would be most influential for decision-making.

  How much will the equipment cost

A) How much will the equipment cost in 5 years? B) How much needs to be deposited today to save up enough to purchase the equipment?

  Describe the short-run impact of the adverse supply shock

An oil cartel effectively increases the price of oil by 100 percent leading to an adverse supply shock in both Country A and Country B. Both countries were in long-run equlibrium at the same level of output and prices at the time of the shock.

  Explain who wins and why

Yet after telling the bank of his conditions the bank refuses to hire Gorton. He sues based on the Americans with Disability Act (ADA). Who wins and why? Would it matter if Gordon never told the bank about his HIV and allergies? If no, why not? If..

  Forecasting sales for the upcoming month

The table below shows actual sales for your company for the last six months ("month" = "period"). You are interested in forecasting sales for the upcoming month (period 7).

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