the way part a to d are already solved so please solve the below e,
f, and part g thanks.
- Kindly Solve The All Parts Of The Question Please By The Way Part A To D Are Already Solved So Please Solve The Below E 1 (48.35 KiB) Viewed 28 times
Kindly solve the all parts of the question please, by the way part a to d are already solved so please solve the below e
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Kindly solve the all parts of the question please, by the way part a to d are already solved so please solve the below e
Kindly solve the all parts of the question please, by
the way part a to d are already solved so please solve the below e,
f, and part g thanks.
= Welfare effects of trade restrictions (17.5%) In the following calculations prices and quantities of cars are denoted in thousands of euros and thousands of cars, respectively. Switzerland produces its own cars but at the same time is able to import cars from neighboring Germany only which sells them for 20,000 EUR (P=20) per car on world markets. The supply and demand curves in Switzerland are given as follows: D= 600 – 10P; S = 100+ 5P (a) How many cars will Switzerland import if it imports German cars at their world price? (b) Assume that Switzerland imposes a specific tariff of 10, 000 EUR on each imported German car (t = 10). How many cars will Switzerland be importing after the tariff? (4 points) (c) Have all the German cars that are not imported anymore been replaced by Swiss cars? (d) Illustrate all welfare changes associated to the Swiss tariff in a small diagram (note: a rough sketch is sufficient as long as it is clearly readable, all axis is labelled and the areas indicated the welfare effects of the tariff are clearly indicated). Also, calculate all changes in producer and consumer surplus (PS, CS), the revenues of the government and the net-welfare losses due to the tariff. (e) Assume that instead of imposing a specific tariff, the Swiss government simply restricted the imports of German cars per year to the amount you calculated above. Would the welfare effects of such a quota be different from that of the tariff? (f) Can you imagine welfare effects arising from the quota that are not captured by your calculations above? (a) What is the difference of a voluntary export restraint (VER) and a quota? Are there different welfare effects in Switzerland if instead of a quota implemented by the Swiss government the German car producers would have agreed to restrict their car exports voluntarily to the number you calculated above? Kindly solve the all parts of the question please, by the way part a to d are already solved so please solve the below e, f, and part g thanks.
the way part a to d are already solved so please solve the below e,
f, and part g thanks.
= Welfare effects of trade restrictions (17.5%) In the following calculations prices and quantities of cars are denoted in thousands of euros and thousands of cars, respectively. Switzerland produces its own cars but at the same time is able to import cars from neighboring Germany only which sells them for 20,000 EUR (P=20) per car on world markets. The supply and demand curves in Switzerland are given as follows: D= 600 – 10P; S = 100+ 5P (a) How many cars will Switzerland import if it imports German cars at their world price? (b) Assume that Switzerland imposes a specific tariff of 10, 000 EUR on each imported German car (t = 10). How many cars will Switzerland be importing after the tariff? (4 points) (c) Have all the German cars that are not imported anymore been replaced by Swiss cars? (d) Illustrate all welfare changes associated to the Swiss tariff in a small diagram (note: a rough sketch is sufficient as long as it is clearly readable, all axis is labelled and the areas indicated the welfare effects of the tariff are clearly indicated). Also, calculate all changes in producer and consumer surplus (PS, CS), the revenues of the government and the net-welfare losses due to the tariff. (e) Assume that instead of imposing a specific tariff, the Swiss government simply restricted the imports of German cars per year to the amount you calculated above. Would the welfare effects of such a quota be different from that of the tariff? (f) Can you imagine welfare effects arising from the quota that are not captured by your calculations above? (a) What is the difference of a voluntary export restraint (VER) and a quota? Are there different welfare effects in Switzerland if instead of a quota implemented by the Swiss government the German car producers would have agreed to restrict their car exports voluntarily to the number you calculated above? Kindly solve the all parts of the question please, by the way part a to d are already solved so please solve the below e, f, and part g thanks.