ANSWERS TO CHAPTER 18

Part 3

  1. a. ....... $8

    b. SEE TABLE

    c. ........ 1

    d. SEE FIGURE

    e. ........ 2

    f. ........ 6

    g. ....... $4

    h. SEE FIGURE

    i. ........ C

    j. ... 6 to 4

    ....... -B

    k. .. 6 to 10

    ....... BC

    l. SEE TABLE

  2. a. SEE FIGURE

    b. ... 6 to 3

    c. . $4 to $6

    d. . $4 to $4. That is, it does not change.

    e. SEE FIGURE

    f. Foreign suppliers.

    g. SEE FIGURE

    h. SEE FIGURE

    i. ........ C

    j. ........ E

    k. SEE TABLE

    l. ... 4 to 5

    ........... D

    m. .. 10 to 8

    ......... -DE

    n. ........ T

    o. -E in Panel a

    p. -RZ in Panel b

    3.

    a. $6 - $4 = $2

    b. .......... B

    c. .......... T

    d. .......... T, therefore this quota is a disguised tax on US consumers.

    4.

    a. SEE FIGURE

    b. .. 10 to 6

    c. . $4 to $8

    d. $4 to $4. That is, itdoes not change.

    e. ........ T

    f. SEE FIGURE

    g. SEE FIGURE

    h. ........ 6

    i. SEE TABLE


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