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

Demand for a product, 1. Suppose the demand for a product is given by QD = ...

1. Suppose the demand for a product is given by QD = 2000 - 25P. a) Calculate the Price Elasticity of Demand when the price is $30. b) What price should the firm charge if it

Statutory compliance mandates, To the extent that statutory compliance mand...

To the extent that statutory compliance mandates conditions that formerly were only available to workers who had union negotiating power to win such conditions at the bargaining ta

Classical quantity theories, Classical Quantity Theories Quantity theor...

Classical Quantity Theories Quantity theories have had a long history and a widespread use in economics. As originally formulated these were not explicitly designed as theories

Choice amonga lottery, You have a choice between a lottery lump sum payout ...

You have a choice between a lottery lump sum payout of $10,000,000 today or a series of 25 annual annunity payments the first payment will be one year from today ad a discount rate

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

How much money can banks create, Q. How much money can banks create? Do...

Q. How much money can banks create? Does that mean that banks can create an unlimited amount of money? No the answer is no - it would require them to lend an unlimited amount o

Lower price in restaurant, A restaurant/bar is analyzing its pricing of bee...

A restaurant/bar is analyzing its pricing of beer. It has determined that the price elasticity of demand for beer is 0.8, the cross-price elasticity for wine with respect to the pr

Factors affecting the price elasticity of demand, Q. Discuss about the fact...

Q. Discuss about the factors affecting the Price Elasticity of Demand. a. Availability of Substitute- Availability of close substitute is important determinants of elasticity of

A history of canadian economy, i have an assignment i need it to be done by...

i have an assignment i need it to be done by thursday march the 10th before midnight

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