What is the overall welfare loss

Assignment Help International Economics

Reference no: EM1394826

The table and graph shown below illustrate the demand and supply schedules for television sets in Venezuela, a "small" nation that is unable to affect world prices.

Venezuela Supply and Demand for Television Sets
Price Per TV	Quantity Demanded	Quantity Supplied
$100	900	0
$200	700	200
$300	500	400
$400	300	600
$500	100	800

2249_Demand and supply.jpeg

In addition to the answer for each item below, describe in a few sentences how you solved each part of the problem. (This will allow the instructor to assign partial credit in case an answer is incorrect.)

Suppose Venezuela imports TV sets at a price of $150 each. Under free trade, how many sets does Venezuela produce, consume, and import?
Assume that Venezuela imposes a quota that limits imports to 300 TV sets. Determine the quota induced price increase and the resulting decrease in consumer surplus.
Calculate the quota's redistributive effect, consumption effect, protective effect, and revenue effect.
Assuming that Venezuelan import companies organize as buyers and bargain favorably with competitive foreign exporters, what is the overall welfare loss to Venezuela as a result of the quota?
Suppose that Venezuelan exporters organize as a monopoly seller. What is the overall welfare loss to Venezuela as a result of the quota?

Reference no: EM1394826

Questions Cloud

Essential to many research designs : Discuss why sampling is essential to many research designs, and why, if done correctly may be more accurate than attempting census measurement.

What is the stoichiometry of the double bond : In Horner-Wadsworth-Emmons reaction, a 1,2-disubstituted alkene was produced in which the olefinic protons exhibited at vicinal coupling of 9.0 Hz in the 1H NMR. What is the stoichiometry of the double bond.

Difference between sample and population : What is the difference between a sample and a population? When can the same information (e.g. the age of each of the ten students in our class) be considered both sample data and population data?

Cumulative convertible preferred stock : Determine whether the following transactions qualify as Type C reorganizations: The acquisition of Bark's assets for $50 million of voting, cumulative convertible preferred stock. Same as (e), except that the consideration consists of bonds convertib..

What is the overall welfare loss : Determine the quota induced price increase and the resulting decrease in consumer surplus and what is the overall welfare loss to Venezuela as a result of the quota?

Examine role of federal in healthcare delivery : Select one federal and one state Agency which regulates healthcare and examine its role in healthcare delivery, its main functions and how it implements those functions.

Regression equation and correlation coefficient : The following regression equation and correlation coefficient were calculated using minitab for the bivariate data age of men and their weight.

Means of sampling distributions : What symbol is used to represent the mean of the sampling distribution of y-(ybar)? Explain and what symbol is used to represent one value from the sampling distribution of y-(ybar)? Explain

Which of the actions will destroy the buffer : A 1.0 L buffer solution is 0.250 M LiC2H3O2 and 0.050 M HC2H3O2 . Which of the actions will destroy the buffer? (a)adding 0.050 moles of LiC2H3O2(b)adding 0.050 moles of HCl(c)adding 0.050 moles of HC2H3O2(d)adding 0.050 moles of NaOH.

User Account

All Pages