Assume The Nation Of Australia Is Small And Thus Unable To Influence The World Price The Following Table Shows The De 1 (64.24 KiB) Viewed 9 times
Assume the nation of Australia is "small" and thus unable to influence the world price. The following table shows the demand and supply schedules for television sets in Australia. Price of TVs Quantity Demanded (Dollars) 500 400 300 200 100 0 PRICE (Dollars per TV set) 600 500 400 300 Using the data in the table, use the blue points (circle symbol) to plot the demand curve, and use the orange points (square symbol) to plot the supply curve on the following graph. Then use the black cross to indicate the equilibrium price and quantity. (Hint: Be sure to use all the given points to plot the supply and demand curves.) 200 100 0 0 10 (Units) 0 10 20 20 30 40 50 30 40 QUANTITY (TV sets) Quantity Supplied (Units) 50 40 30 20 10 0 50 60 Demand 0 Supply + Equilibrium A Consumer Surplus Producer Surplus ?
The equilibrium price is $ The consumer surplus is $ On the previous graph, use the green triangle symbol to shade the area of consumer surplus. Then use the purple diamond symbol to shade the area of producer surplus. Under these conditions, changes to $ , and the equilibrium quantity is Under free-trade conditions, suppose Australia imports TV sets at a price of $100 each. , and the producer surplus is $ TV sets. True TV sets will be produced, , whereas producer surplus becomes $ False consumed, and To protect its producers from foreign competition, suppose the Australian government levies a specific tariff of $100 on imported TV sets. On the previous graph, use the tan points (dash symbol) to plot the world supply with the tariff. With the tariff, the quantity of TV sets supplied by Australian producers is consumers is TV sets. Thus, the volume of trade is TV sets. imported. As a result, consumer surplus. True or False: For a small nation, a tariff placed on an imported product increases consumer surplus. As a result, the small nation's welfare increases by an amount equal to the protective effect and consumption effect. TV sets, whereas the quantity of TV sets demanded by Australian
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