🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
Economics
1
answer
0
watching
162
views

Suppose the following table reflects the domestic supply and demand for compact discs (CDs):

Price ($) 18 16 14 12 10 8 6 4
Quantity supplied 8 7 6 5 4 3 2 1
Quantity demanded 2 4 6 8 10 12 14 16


(a) Graph supply and demand given these market conditions.

(i) Identify the equilibrium price. $

(ii) Identify the equilibrium quantity. CDs

(b) Now suppose that foreigners enter the market, offering to sell an unlimited supply of CDs for $6 apiece. Draw a new line representing the foreign supply.

Use the graph to answer the questions below.

(i) Identify the new market price. 

(ii) Domestic consumption. 

(iii) Domestic production. 

(c) If a tariff of $3 per CD is imposed, what will be

(i) The market price?
(ii) Domestic consumption?
(iii) Domestic production?

Watch
1
answer
0
watching
162
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

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

PLEASE EXPLAIN ANSWER: I give best asnwer at the end of the time limit!!!


The more certain private property rights are,

a. A. the less people need to invest in education or human capital development.

b. tB. The less entrepreneurship there will be.

c. C/ the more capital accumulation there will be.

D/ d. the more an economy must grow to maintain a certain living standard.


In general, who will benefit as the result of a tariff?

Domestic Producers
Domestic Consumers
The domestic government

a. I only

b. II only

c. both I and III

d. both II and III

e. All of these are correct


In the long run, imports will most likely be paid for with:

a. a. Aexports.

b. tB. The sale of real and financial assets.

c. C/ the extension of credit.

d. D. higher domestic unemployment.


The World Trade Organization is a successor organization to the

a. A.United Nations.

b. B.World Bank.

c. C.International Court of Justice.

d. D.GATT.

A new industry develops, and our government wants to protect it from foreign competition. Which one of the following arguments would appropriately describe this type of protection?

A. ANational security

B. BCartelization

C. CInfant industry

D. DProtecting American jobs


If equilibrium price falls and the equilibrium quantity of the good purchased decreases, what has happened to either the supply curve or to the demand curve?

a. ADemand decreased.

b. Supply increased.

c. CSupply decreased.

d. DDemand increased.


Suppose there is a simultaneous increase in the demand for diamonds and increase in the supply of diamonds. Which of the following will occur as a result of these simultaneous events?

a. B/Both the market clearing price and equilibrium quantity will rise.

b. A.The market clearing price will fall, but the equilibrium quantity may rise, fall, or stay the same.

c. C.The market clearing price may rise, fall, or stay the same, but the equilibrium quantity will increase.

d. F.The market clearing price will fall, but the equilibrium quantity will rise.


Price Qd Qs

$2 5,000 1,000
$4 4,000 2,000
$6 3,000 3,000
$8 2,000 4,000
$10 1,000 5,000

Consider the above table. Assuming the government imposes a price floor on garbanzo beans of $8, what would be the likely result?

a. A/ no change, equilibrium would prevail

b. B.The quantity demanded of garbanzo beans would fall to zero.

c. C. shortage of 2000 garbanzo beans

d. D/ surplus of 2000 garbanzo beans

   

Consider the table below:

Demand and Supply Schedule for Pizza

Price ($)

Quantity Demanded

Quantity Supplied

14

130

190

12

140

170

10

150

150

8

160

130

6

170

110

4

180

90

The equilibrium price for pizza is $

and the equilibrium quantity is pizzas. (Enter your responses as whole numbers.) Now, suppose that the demand increases such that the quantity demanded increases by 30 more pizzas at every price. Calculate the new equilibrium price $ and the new equilibrium quantity pizzas

Type y

Introduction: Suppose that the U.S. currently buys and produces wingdings, a fictitious economic good. The U.S. faces the world price, and domestic suppliers sell as many

wingdings as possible at the world price. Now, the government succumbs to lobbying by
wingding producers and imposes a protective tariff on wingdings amounting to $2 per
wingding. The graph below represents this situation.
World Price
World Price + Tariff
U.S. Supply
U.S. Demand
Price
Quantity (millions of pounds)
6 12 16 18 26
6
8
10
4
Market for Wingdings:<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

Answer the following questions. Use formulas and show calculations as well as final
answers.
A. Does the United States have a comparative advantage in wingdings? Explain.
B. Discuss the effect of the tariff on the number of imports..
C. How did the imposition of the tariff change consumer surplus?
D. How did the imposition of the tariff change producer surplus?
E. What is the overall result of the tariff in terms of welfare?

our question here

Weekly leaderboard

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