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

Explain the term unit labor costs, An article published in Die Zeit on 25 M...

An article published in Die Zeit on 25 March 2010 analyses the German policy that allows for only moderate increases in wages. According to this article, the unit labor costs in Ge

The world economy , The financial crisis that hit the United States first a...

The financial crisis that hit the United States first and then the world economy starting in fall 2007 meant that the future prospects of many firms looked gloomy at best for some

Subsequent withdrawals increase, What is the amount of five equal annual de...

What is the amount of five equal annual deposits that can provide five annual withdrawals, where a first withdrawal of $1500 is made at the end of year six and subsequent withdrawa

What is the price elasticity of supply, What is the price elasticity of sup...

What is the price elasticity of supply? Price elasticity of supply: The price elasticity of supply is a measure of the receptiveness of the quantity of a good supplied to pr

Illustrate the says law, Q. Illustrate the Says Law? With Say's Law, ag...

Q. Illustrate the Says Law? With Say's Law, aggregate demand would always be equal to aggregate supply and cross model would be incorrect.  Keynes's argument as to why Say's

Pseudoreplication, Give your own example of "pseudoreplication" (sensu Hurl...

Give your own example of "pseudoreplication" (sensu Hurlbert 1984) in an experiment. How does pseudoreplication cause problems for correct inferences from experiments?

National income computation, What is the formula for computing for national...

What is the formula for computing for national income in a closed economy with government intervention

Is household savings depend on gdp in the cross model, Q. Is Household savi...

Q. Is Household savings depend on GDP in the cross model? Household savings depends on Y since S H = Y - C - NT and C and NT both rely on Y. How it depends on Y can't be concl

International trade, developing countries benefit through international tra...

developing countries benefit through international trade from developed countries

Set up a diagram.., (a) Use this information to set up a diagram showing th...

(a) Use this information to set up a diagram showing the firm''s total revenue and total cost schedules. In this diagram, show the points at which the firm is maximizing profits.

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