Find The Best Nursing Paper Writers For Your Assignments

You Can order for custom written paper 24/7! by completig a form in 3 steps. Get those desired coursework assessment grades!

Posted: April 10th, 2022

Calculate the value of tariff revenue – Microeconomics

Calculate the value of tariff revenue – Microeconomics

Quiz 3-

1. A small open economy opens its banana market to trade. If the price of bananas in the world market is $2 per unit while the price of bananas in this small economy when it is closed is equal to $1, we can conclude that

a. Trade will benefit the domestic consumers in this small economy.

b. Trade will benefit the domestic producers in this small economy.

c. Total surplus in the small economy will increase with trade.

d. Answers (a) and (c) are both true.

e. Answers (b) and (c) are both true.

f. Answers (a), (b) and (c) are all true.

2. Given the information in question (1), this small economy will ___________ bananas once the banana market is open to trade.

a. import

b. export

Use the following information to answer the next three questions.

The domestic demand and domestic supply curve for books in a small closed economy are given by the following equations:

Domestic Demand: P = 200-2Q

Domestic Supply: P = 2Q

The world price of books is $20. Suppose this economy opens its book market to trade and simultaneously enacts a tariff of $20 per book.

3. Calculate the value of tariff revenue given the above information.

4. Calculate the value of consumer surplus when the book market is closed and the value of consumer surplus once the tariff is implemented. Do domestic consumers prefer the closed economy or the open economy with the tariff in this situation?

5. Calculate the deadweight loss from the tariff.

6. Suppose Joe’s income is $500 and he spends it on either movie tickets (M) or dinners out (D). If Joe spends all of his income on movie tickets he can afford 40 tickets and if he spends all of his income on dinners out he can afford 20 dinners.

a. What is the price of a movie ticket?

b. What is the price of a dinner?

c. Which of the following combinations of movies and dinners (M, D) are on Joe’s budget line? Circle the combinations that are on Joe’s budget line.

i. 10 M, 30 D

ii. 20 M, 15 D

iii. 10 M, 15 D

iv. 8 M, 16 D

d. Suppose that Joe maximizes his utility given the above information when he consumes 20 dinners. If the price of dinners changes to $40 Joe will maximize his utility by consuming 5 dinners. Ace my homework – Write an equation for Joe’s demand curve for dinners given this information. Assume this demand curve is a linear demand curve.

Write My Paper

Academic Paper Writing Help For You!

Get 20-25% Off On Your Order!

Why choose us

You Want Quality and That’s What We Deliver

Professional Writers

We assemble our team by selectively choosing highly skilled writers, each boasting specialized knowledge in specific subject areas and a robust background in academic writing

Discounted Prices

Our service is committed to delivering the finest writers at the most competitive rates, ensuring that affordability is balanced with uncompromising quality. Our pricing strategy is designed to be both fair and reasonable, standing out favorably against other writing services in the market.

AI & Plagiarism-Free

Rest assured, you'll never receive a product tainted by plagiarism or AI-generated content. Each paper is research-written by human writers, followed by a rigorous scanning process of the final draft before it's delivered to you, ensuring the content is entirely original and maintaining our unwavering commitment to providing plagiarism-free work.

How it works

When you decide to place an order with Nurscola, here is what happens: