Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 12 assume that there are two countries, home and f

12 Assume that there are two countries, Home and Foreign. Home's demand curve for manufactured...

70.2K

Verified Solution

Question

Accounting

image

12 Assume that there are two countries, Home and Foreign. Home's demand curve for manufactured goods is D=240 3P where P denotes the price of manufactured goods. Home's supply curve is S= -40+2P. Foreign's export supply curve is XS = -100+5P. a) Derive Home's import demand curve (MD). (2 pts) b) Assume Foreign and Home trade with each other at zero transportation cost. What is the world market price? What is the import volume? Provide some intermediate steps of calculation. (4 pts) C) Assume now that Home introduces an import tariff (per unit) t = 5. Calculate (1) the external market price PT i.e., Foreign's export price, and (ii) the internal market price PT, i.e., the price Home's consumers have to pay (4 pts)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

DuPont identity.??For the firms in the popup? window, find the return on equity using the three...

Finance
Q

One year? ago, your company purchased a machine used in manufacturing for $105,000. You have learned...

Finance
Q

On the island of Knights and Knaves we have three people A, B and C. (The...

Advance Math
Q

was there any synergy and follow up implementation to the AOL - TIME WARNER MERGER?

Finance
Q

Write a paraphrase of this: Properties of Waste: The characteristics of waste must be known in order...

Civil Engineering
Q

What is Six Sigma? Why would any company including Microsoft company want to implement it?

General Management
Q

Study this list The development of public transportation The invention of the automobile The development...

Biology
Q

If algebraic sum of lengths of perpendiculars drawn from vertices of a hexagon ABCDEF, A(-2,-1),...

Basic Math
Q

Determine whether the statement is true or false If it is false rewrite it as...

Statistics
Q

Let p and q be distinct prime numbers Determine the total number of elements of...

Algebra
Q

On Jan 1, 20x1, AAA Corporation purchased 25% of the common shares of BBB Corporation...

Accounting
Q

Problem 20-1A Production cost flow and measurement; journal entries LO P1, P2, P3, P4 The...

Accounting