User Account

All Pages

What was the u.s. domestic price of the metal

Assignment Help Microeconomics
Reference no: EM13321682

A particular metal is traded in a highly competitive world market at a world price of $9 per ounce. Unlimited quantities are available for import into the United States at this price. The supply of this metal from domestic U.S. mines and mills can be represented by the equation QS = 2/3P, where QS is U.S. output in million ounces and P is the domestic price. The demand for the metal in the United States is QD = 40 - 2P, where QD is the domestic demand in million ounces. In recent years the u.s. industry has been protected by a tariff of $9 per ounce. Under pressure from other foreign governments, the United States plans to reduce this tariff to zero. Threatened by this change, the U.S. industry is seeking a voluntary restraint agreement that would limit imports into the United States to 8 million ounces per year. a. Under the $9 tariff, what was the U.S. domestic price of the metal?

b. If the United States eliminates the tariff and the voluntary restraint agreement is approved, what will be the U.S. domestic price of the metal?

Reference no: EM13321682

Questions Cloud

Cigarettes are subject to a federal tax which was about 40 : Cigarettes are subject to a federal tax, which was about 40 cents per pack in 2007.What does this tax do to the market-clearing price and quantity?
Repeat for a 50-cents-per-gallon gasoline tax : Currently, the social security payroll tax in the United States is evenly divided between employers and employees. Employers must pay the government a tax of 6.2 percent of the wages they pay, and employees must pay 6.2 percent of the wages they rece..
Find the domestic price of hula beans that will result : Find the domestic price of hula beans that will result if the tariff is imposed. Also compute the dollar gain or loss to domestic consumers, domestic producers, and government revenue from the tariff.
How will the new tax affect the beer market : Among the tax proposals regularly considered by Congress is an additional tax on distilled liquors. The tax would not apply to beer. The price elasticity of supply of liquor is 4.0, and the price elasticity of demand is -0.2. The cross-elasticity of
What was the u.s. domestic price of the metal : If the United States eliminates the tariff and the voluntary restraint agreement is approved, what will be the U.S. domestic price of the metal?
Calculate the tax revenue collected by the government : The United States currently imports all of its coffee. The annual demand for coffee by U.S. consumers is given by the demand curve Q = 250 –l0P, where Q is quantity (in millions of pounds) and P is the market price per pound of coffee. World producer..
Had the government not given the wheat back to the farmer : In 1983, the Reagan administration introduced a new agricultural program called the Payment-in-Kind Program. To see how the program worked, let"s consider the wheat market:
State the time-independent schrodinger equations : Write the time-independent Schrodinger equations for (a) an electron moving in one direction about a stationary proton and subjected to a Coulombic potential, (b) a free particle, (c) a particle subjected to a constant, uniform force.
How to calculate the specific heat of the metal : A student places 1.38g of unknown metal at 99.6 degrees Celsius into 60.50 g of water at 22.1 degrees Celsius. The entire system reaches a uniform temperature at 31.6 degrees Celsius. Calculate the specific heat of the metal

Reviews

Write a Review

Microeconomics Questions & Answers

  Does the mean advertising is economically inefficient

Advertising can inform buyers, but sellers must incur costs to advertise. If so, advertising can result in higher prices to consumers. Does this mean advertising is economically inefficient If so explain how it can simultaneously create value and ..

  Compute the marginal profit function

Compute the marginal profit function and what is the profit maximizing price, what is the market demand function and what is each firm's supply function?

  Analysis of production and costs

Will firms in industries, in which high levels of output are necessary for minimum efficient scale, tend to have substantial degrees of operating leverage? Please explain.

  Is jean better off-worse off or equally well off

Jean views coffee and cream as perfect complements. In the first period, Jean picks an optimal bundle of coffee and cream, e1. In the second period, inflation occurs, the prices of coffee and cream change by dif- ferent amounts, and Jean receives ..

  Question on demand type

Given a 15% raise in a good's price and a 25% decrease in quantity demanded for good by consumer, which of the following types of elasticity best describes the demand curve for the consumer?

  How economy is experiencing a sharp and prolonged trend

Suppose that you are a member of the Board of Governors of the Federal Reserve System. The economy is experiencing a sharp and prolonged inflationary trend. What changes in (a) the reserve ratio, (b) the discount rate.

  Influence on the market supply of labour

Use a graphical illustration to describe briefly what the influence on the market supply of labour

  Why mutual funds are attractive investment opportunity

How would you use the information you have learned in this class to develop your own investment portfolio What investments would you hold, in what proportions, and why What is your level of risk aversion

  What specific global imbalance are indentified

what effects might a decision by these countries to diversify their interrational reserve holdings have on the dollar and what problems might it create for U.S monetary policy?

  Describe and discuss the theory or hypothesis

Describe and discuss the theory or hypothesis you wish to discuss in your paper.

  What are the efficiency and equity effects of introducing

1.Consider two metropolitan areas, one that has many small school districts and one that has only a few large school districts. In a paragraph, what are the efficiency and equity effects of introducing a voucher system likely to differ across these t..

  Exlplain the rule of 70

Apply the rule of 70 to solve the following problem. Real GDP per person in Mexico in 2005 was about $12,000 per person, while it was about $48,000 per person in the United States

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd