Figure 19-5 Bragabong Currently Both Produces and Imports Almonds

question 27

Essay

Figure 19-5 Bragabong currently both produces and imports almonds.The government of Bragabong decides to restrict international trade in almonds by imposing a quota that allows imports of only 10 million kilos each year.Figure 19-5 shows the estimated demand and supply curves for almonds in Bragabong and the results of imposing the quota.
-Use Figure 19-5 to answer questions a-j .
a.If there is no quota what is the domestic price of almonds and what is the quantity of almonds demanded by consumers?
b.If there is no quota how many kilos of almonds 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 Bragabong?
e.If there is no quota what is the revenue received by foreign producers who supply almonds to Bragabong?
f.With a quota in place what is the price that consumers of Bragabong 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 Bragabong? Are domestic producers better off?
i.Calculate the revenue to foreign producers who are granted permission to sell in Bragabong after the imposition of the quota.
j.Calculate the deadweight loss as a result of the quota.

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Definitions:

RF Jamming

The deliberate emission of radio frequency signals to interfere with the operation of a communicating device by overpowering it with noise or false information.

Wireless Network

A network where devices communicate over airwaves without requiring physical connections, using technologies like Wi-Fi and Bluetooth.

Transmissions

The action or process of transmitting something, or the mechanism by which power is transferred from an engine to the wheels of a vehicle.

Bluetooth

Bluetooth is a wireless technology standard for exchanging data over short distances from fixed and mobile devices, enabling the creation of personal area networks.