ECON303 - Midterm02 - F10

ECON303 - Midterm02 - F10 - Midterm #2 (A) October 25,2010...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Midterm #2 (A) October 25,2010 o ECON313 International Economics Good Luck!! Name: I 1 \~------------__~t ID Number:- - - - - - - - - You are permitted to only have a writing utensil, a non-programmable calculator, and a straight-edge with you during the exam. Answer all o questions fully. Show your work for credit. Be sure to label all curves and points on graphs. I f you feel a graph is appropriate for a question, include one with your answer, even if not explicitly asked for. Be sure to fully discuss your answers. o 1. (20 Points) Consider England, which is a large country. England consumes and produces drums, but it- finds that the majority of its drums come from its neighbor Spain. The demand and supply of drums in England are: d Demand: Q = 100 - 2 P ::\> e..::.-=C>~ :: $01; ==C>? 0;: . =t> Q.~ I DOt 5 Supply: Q = P Currently, England is importing drums at a free trade price of $20. The Queen of England is considering imposing a $10 tariff on drum imports. When the tariff is implemented the price of drums in the rest of the world falls to $15. Calculate consumer surplus, producer surplus, deadweight loss, tariff revenues, and total surplus before and after the tariff. lIIustrate all of these on a graph. Is the tariff a good idea for S~c..~ Soc.~AL W~~o...~6 W i;.~ "'\:X)~N "\:n..o'l"'\.__ II ~OO to If \ <O",~ A~{ ~ - "\\-\. t \ 1--\\' \t>..."'-GtJ~~.:~-l-O 10 () ~...
View Full Document

This note was uploaded on 04/07/2011 for the course ECON 303 taught by Professor Staff during the Fall '08 term at Sonoma.

Page1 / 6

ECON303 - Midterm02 - F10 - Midterm #2 (A) October 25,2010...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online