part a The effect of a tariff on the quantity demanded of an imported commodity: a will be higher the greater the elasticity of its demand. b will be lower the greater the elasticity of its demand. c does not depend on its elasticity of demand. d will only depend on its elasticity of supply.
part a The effect of a tariff on the quantity demanded of an imported commodity: a will be higher the greater the elasticity of its demand. b will be lower the greater the elasticity of its demand. c does not depend on its elasticity of demand. d will only depend on its elasticity of supply.
Chapter12: The Partial Equilibrium Competitive Model
Section: Chapter Questions
Problem 12.8P
Related questions
Question
part a
The effect of a tariff on the quantity demanded of an imported commodity:
a will be higher the greater the elasticity of its demand.
b will be lower the greater the elasticity of its demand.
c does not depend on its elasticity of demand.
d will only depend on its elasticity of supply.
part b:
In a market supplied by both domestic and foreign producers the government establishes a quota on imports at a level below current imports. The quantity sold by domestic producers will ______________ and the equilibrium quantity in the market overall will ______________.
a not change; not change
b increase; decrease
c decrease; decrease
d decrease; not change
Part C: The picture attached
![Assume the U.S. imports bananas from abroad at a market price of $0.25
per banana, and a tariff of $0.10 is placed on imported bananas. If the
supply and demand for bananas are normal supply and demand
relationships, which of the following represents the resulting equilibrium in
the U.S. market for bananas produced abroad?
Price
O Targets placed: 0/1
You can place up to 1 targets
Banana Market with a Tariff
Original
Supply
B
A
Original
Demand
Millions of bananas produced
abroad
Undo
Delete selected
Remove All](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F35f2bbd2-7586-429c-a9c8-27fea227e1fd%2F4bbd6582-f073-4713-9fcd-9cb0f9355404%2F3dggoh_processed.png&w=3840&q=75)
Transcribed Image Text:Assume the U.S. imports bananas from abroad at a market price of $0.25
per banana, and a tariff of $0.10 is placed on imported bananas. If the
supply and demand for bananas are normal supply and demand
relationships, which of the following represents the resulting equilibrium in
the U.S. market for bananas produced abroad?
Price
O Targets placed: 0/1
You can place up to 1 targets
Banana Market with a Tariff
Original
Supply
B
A
Original
Demand
Millions of bananas produced
abroad
Undo
Delete selected
Remove All
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you