New equilibrium price also quantity, Macroeconomics

Assignment Help:

Take a look at the sugar market:
US demand: Q=60-2/3 P
US domestic supply: Q=P
Also, the US could import any quantity from world producers at (US$) 10/cents per lb

a) In a scenario with free trade- what would be equilibrium price in US, also what would be consumer surplus and producer surplus?

b) Assume FDA changes its mind and opens her US to sugar imports; however the government wants to promote domestic sugar production by giving a subsidy of 15 cents/lb

What would be new equilibrium price and quantity?

How much is domestic produced and how much is imported?

What is new consumer surplus and producer surplus?

What is deadweight loss compared to the scenario in question a)?


Related Discussions:- New equilibrium price also quantity

Functions of money, Functions of Money During the course of history mo...

Functions of Money During the course of history money has taken various forms. In fact, there is no difficulty in identifying money but the problem is defining money. Economis

The circular flow of income in an open economy, The circular flow of income...

The circular flow of income in an open economy   An open economy is one in which international trade exists. Assume also that there is government spending and taxation. Thus

#title., it has been argued that economic development of developing countri...

it has been argued that economic development of developing countries has been held back by a persistent fall in the terms of trade of developing countries over the long run

Making lease payments that are equivalent to annual payments, A company can...

A company can lease an asset for the next five years by making lease payments that are equivalent to annual payments of $3,000 at year 0, $6,000 at year 1, $7,000 at year 2, $7,000

International trade, how to maintain equilibrium gdp in foreign trade

how to maintain equilibrium gdp in foreign trade

Mulitplier, Hello, I am having difficulty in understanding what multiplier ...

Hello, I am having difficulty in understanding what multiplier is.

Quantitative data analysis and interpret , 1. To assess your ability to con...

1. To assess your ability to conduct quantitative data analysis and interpret the results of data analysis introduced inForecasting Trend. 2. To assess your ability to communicate

Tax credit, Suppose that an investment tax credit is stated to be temporary...

Suppose that an investment tax credit is stated to be temporary in nature, and the credit will be 10% on newly acquired capital (investment) equipment and will last just one year o

Price results in the efficient quantity, The Price ceiling is the law that ...

The Price ceiling is the law that sets a maximum price below the equilibrium market price, but a price floor is the law that sets a maximum price above the market equilibrium price

Business cycles, Elplain the casual factors of the traditional business cyc...

Elplain the casual factors of the traditional business cycle and its effects on sectors of the economy

Write Your Message!

Captcha
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