Log in
Economics
2
answers
0
watching
179
views

Tariffs and quotas both raise the price of foreign goods to domestic consumers. What is the difference between the efforts of a tariff and the effects of quota on the following?

A. the domestic government

B. foreign producers

C. domestic producers

Watch
2
answers
0
watching
179
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share
Darryn D'Souza
Darryn D'SouzaLv10
29 Sep 2019
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

Demand is given by: Qd = 6000 - 50P, Domestic supply is: Qs = 2*P, and Foreign producers can supply any quantity at a price of $40. Calculate each the following:


a. If foreign producers cannot sell in the domestic market, what is the equilibrium price? Quantity? Revenue?

b. If foreign producers can sell in the domestic market, what is the equilibrium price? What is the equilibrium quantity? How much is sold by domestic and foreign producers, respectively? What is the revenue for domestic and foreign producers, respectively?


c. Under domestic government pressure, foreign producers voluntarily agree to restrict their goods. Relative to (b): What will happen to the price and quantity? What will happen to the amount that domestic producers supply? What will happen to revenues of domestic and foreign producers?

Other things equal, a tariff is

a. superior to an import quota for Americans because a tariff increases the profits of foreign producers

b. inferior to an import quota for Americans because a tariff increases the profits of domestic producers

c. superior to an import quota for Americans because a tariff generates revenue for the United States Treasury

d. inferior to an import quota for Americans because a tariff generates revenue for the United States Treasury

Ā 

Following equations characterize demand and domestic supply for sugar in the U.S.:

QD = 29: 73 - 0.19P and QS = -7: 95 + .66P . In 2011, imports were limited to 6.9

billion pounds, which pushed the domestic price to 36 cents per pound. Suppose imports were

expanded to 10 billion pounds.

(a) What would be the new U.S. domestic price? (Hint: The difference between the domestic

quantities demanded and supplied, QD - QS , is equal to the quota)

(b) How much would consumers gain and domestic producers lose?

(c) What would be the eect on deadweight loss and foreign producers?

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in