Figure 19-9 -Refer to Figure 19-9.Fenwick Currently Both Produces and Imports Pistachios.The

question 315

Essay

Figure 19-9

-Refer to Figure 19-9.Fenwick currently both produces and imports pistachios.The government of Fenwick decides to restrict international trade in pistachios by imposing a quota that allows imports of only 5 million pounds each year.Figure 9-9 shows the estimated demand and supply curves for pistachios in Fenwick and the results of imposing the quota.Answer questions a-j using the figure.
a.If there is no quota what is the domestic price of pistachios and what is the quantity of pistachios demanded by consumers?
b.If there is no quota how many pounds of pistachios would domestic producers supply and what quantity would be imported?
c.If there is no quota what is the dollar value of consumer surplus?
d.If there is no quota what is the dollar value of producer surplus received by producers in Fenwick?
e.If there is no quota what is the revenue received by foreign producers who supply pistachios to Fenwick?
f.With a quota in place what is the price that consumers of Fenwick must now pay and what is the quantity demanded?
g.With a quota in place what is the dollar value of consumer surplus? Are consumers better off?
h.With a quota in place what is the dollar value of producer surplus received by producers in Fenwick? Are domestic producers better off?
i.Calculate the revenue to foreign producers who are granted permission to sell in Fenwick after the imposition of the quota.
j.Calculate the deadweight loss as a result of the quota.

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Definitions:

Pressure Ulcers

Areas of damaged skin and tissue that develop when sustained pressure cuts off circulation, typically in individuals with limited mobility; also known as bedsores or decubitus ulcers, emphasizing the serious health implications and the need for preventative measures.

Skin Breakdown

The loss of integrity of the skin, often resulting from prolonged pressure or friction, leading to ulcers or wounds.

Expected Outcomes

Anticipated result or effect of a specific intervention or course of action in a healthcare context.

Confused Patient

Refers to an individual who is experiencing disorientation or a lack of clarity in thinking, often observed in medical settings.