Problem 7;From figure 9-4 determine the effect of a 33 percent import tariff on commodity X;The tariff-inclusive price will be $3(1+.33) = $4. What are the impacts of tariff on domestic consumption, domestic production, imports, and government?s tariff revenue? Show the numbers, for example, at figure 9-4, if you draw a line starting at Px=$4 and parallel to the X axis, it will cross the demand curve, Dx, at 500X. Therefore, you know that the domestic consumption will decrease from 600X to 500X.;Froeb et al.?s Chapter 9;9-3;Snack food vendors and beer distributers earn some monopoly profits I their local markers but see them slowly erode from various new substitutes. When California voted on legalizing marijuana, which side would you think that California beer distributors were on? What about snack food vendors? Why?;9-4;Relative to managers in more monopolistic industries are managers in more competitive industries more likely to spend their time on reducing costs or on pricing strategies?;11-4;How does a decrease in U.S. interest rates affect the EU/U.S. exchange rate?;Use the carry trade to predict the impact of lower U.S. interest rates on Euro/$;11-5 How will a dollar devaluation affect businesses and consumer sin the twin cities of El Paso, United States, and Juarez, Mexico?;Make sure you explain the impact on the twin cities no just 1 city.
Paper#15813 | Written in 18-Jul-2015Price : $27