The calculator shows the domestic demand for and supply of barley in Canada. The

Question

The calculator shows the domestic demand for and supply of barley in Canada. The horizontal brown line shows the world price of $6 for a bushel of barley. Canada imports barley primarily from the United States. Assume that the amount demanded by any one country does not affect the world price of barley Use the calculator to help you answer the following questions. Note that the calculator is just here to help you answer the questions that follow; you will not be graded on anything you do with it. Once you leave the page, the calculator will refresh to its initial values. Tool tip: Use your mouse to drag the green line on the graph. The values in the boxes on the right side of the calculator will change accordingly. You can also directly change the value in the box with the white background by clicking in the box and typing. The graph and any related values will change accordingly PRICE IDollars CALCULATOR 24 + 21 18 15I 12 Price Dellars 18 Domestic Demand Milions of bushels 2 Domestic Supply Millians of bushels) 18 Imports [Millions of bushels 10 15 20 25 QUANTITY (Miltions of bushels of barley The Canadian government decides to impose trade restrictions on barley imports by setting a quota of 11 million bushels of barley. With the quota, the price of barley in Canada will be per bushel. The Canadian government explains that it is necessary to impose trade restrictions on barley to protect workers in the domestic barley industry. Assume that the Canadian through its protectionist policies. Which of the following would provide the Canadian government with revenue? Check all that apply. government would like to generate government revenue A tariff on U.S. barley A quota on barley in which import licenses are given to the us. government for free distribution tous. barley producers A quota o n barley in which the quotas are distributed via lottery 0

Explanation / Answer

1. World price for a Bushel of Barley = $6

Import quota = 11 Million Bushels

Price of a Bushel of Barley = $12 as there is a quota on imports. At this point demand equals supply. The price is higher than the world price.

2. Revenue for the Canadian Government

A tariff on US Barley; a quota on barley in which import licenses are auctioned off to US Barley producers

Revenues come through tariffs and auctioning of licenses; Government won't get revenue through free distribution or distribution via lottery

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.