diff_months: 17

Plot how welfare change with Demand and Supply Assessment

Download Solution Now
Added on: 2023-03-04 09:20:22
Order Code: eqb2 3-3-23
Question Task Id: 0
  • Country :


Use the spreadsheet "ch_7_template.xls" to answer the following questions. The spreadsheet allows you to plot how welfare changes with a change in tariffs for an importing country under a range of as- sumptions. The first few columns show the parameters for demand and supply for a commodity pro- duced by two countries, Home and Foreign, as well as welfare weights for producer and consumer surplus and tariff revenue and some additional policies. You can change these settings. Column K gives a range of possible values for Home's tariff, and the following columns allow you to calculate the equilibrium outcomes for various variables for each value of the tariff, conditional on the parameter settings in the first few columns of the spreadsheet. In particular, column R shows Home unweighted welfare, and column S shows Home weighted welfare, based on the weights given by cells F13-F15.

1. Calculate Home's import demand and Foreign's export supply as a function of P and parame- ters (a,b,c,d, a, b,c,d,t). Derive an expression for the world equilibrium price P as a func- tion of parameters (a,b,c,d,a,b,c,d",t).

2. Using the spreadsheet, calculate the world equilibrium price for a range of values of the tariff t. Derive values for the domestic price. Why do imports become zero above a certain tariff thresh- old? Correct the relevant prices accordingly in the spreadsheet. Calculate all other equilibrium in the spreadsheet.

3. Using the parameters for the U.S.-ROW sugar model detailed in Section 7.2, create a figure that plots U.S. social welfare on the vertical axis against the tariff level on the horizontal axis. Using this visual aid, find (to a reasonable approximation) the optimal tariff, and compare it to the tariff level of 12.38 cents per pound that is a good approximation for the actual policy. What can you learn from this comparison?

Get your Plot how welfare change with Demand and Supply assignment solved by our Economics Experts from Exam Question Bank . Our Assignment Writing Experts are efficient to provide a fresh solution to all question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing Style. Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered.

You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turn tin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.

  • Uploaded By : Katthy Wills
  • Posted on : March 04th, 2023
  • Downloads : 0
  • Views : 268

Download Solution Now

Can't find what you're looking for?

Whatsapp Tap to ChatGet instant assistance

Choose a Plan


80 USD
  • All in Gold, plus:
  • 30-minute live one-to-one session with an expert
    • Understanding Marking Rubric
    • Understanding task requirements
    • Structuring & Formatting
    • Referencing & Citing


30 50 USD
  • Get the Full Used Solution
    (Solution is already submitted and 100% plagiarised.
    Can only be used for reference purposes)
Save 33%


20 USD
  • Journals
  • Peer-Reviewed Articles
  • Books
  • Various other Data Sources – ProQuest, Informit, Scopus, Academic Search Complete, EBSCO, Exerpta Medica Database, and more