Answer questions through bused on Fig. I below, which describes Autarky. Tariff,
ID: 1200812 • Letter: A
Question
Answer questions through bused on Fig. I below, which describes Autarky. Tariff, and Free Trade solutions in the women's dress industry in the U.S In Fig. 1. what is the dollar amount of tariff imposed on this product under tariff solution compared to the free trade solution What will be the domestic price of the women's dress (in dollars) in the U.S. under the three alternative regimes: autarky (closed economy) solution, tariff solution, and free trade solution in that order What will be the quantity of domestic consumption (demand) of women's dress in the U.S. under the three alternative regimes (autarky, tariff, and free trade solutions in that order) (in million units) What will be the quantity of domestic production (supply from domestic producers) of women's dress in the U.S. under the three alternative regimes (autarky. tariff, and free trade solutions in that order) (in million units) What will be the quantity of domestic imports of women's dress in the U.S. under the three alternative regimes (autarky, tariff, and free trade solutions in that order) (in million units) What will be the estimated value of producer's surplus generated from the women's dress industry in the U.S. under the three alternative regimes (autarky, tariff, and free trade in that order) (in million dollars) What w ill be the estimated value of consumer's surplus generated from the women's dress industry m the U.S. under the three alternative regimes (autarky, tariff, and free trade in that order) (in million dollars) Compare the tariff with the free trade solution and then estimate how much of the above consumer's surplus will be redistributed from the consumers to the government due to tariffs (in million dollars) Compare the tariff solution with the free trade solution and then estimate how much of consumer's surplus will be redistributed from the consumers to the producers due to tariffs (in million dollars) Identify the areas and then estimate the value of the deadweight social welfare loss (in million Sko domestic consumers from the imposition of the tariffExplanation / Answer
(a) Tariff per unit = $(42 - 25) = $17
(b)
Under autarky, price = $42
Under tariff, price = $25
Under free trade, price = Pw = $15
(c) Domestic demand:
Under autharky = 16.5 million
Under tariff = 21.5 million
Under free trade = 24.5 million (The last quantity point in horizontal axis - can't read properly)
(d) Domestic production:
Under autarky = 16.5 million
Under tariff = 7.5 million
Under free trade = 2.5 million
(e) Import = Domestic demand - Domestic supply
Under autarky = 0
Under tariff = 21.5 - 7.5 = 14 million
Under free trade = 24.5 - 2.5 = 22 million
NOTE: First 5 sub-questions are answered. Some numbers are very hazy, and can result in inadvertent mistake in reading & calculation.