1. (5) Assumption : US is a large country in importing steel. There is same elastisity both importing demand curve and exporting supply curve.(进口需求曲线和出口供给曲线的弹性相同)。
In free trade, US imported steel 100 tons in the price of $100 per ton. Now US imposed $20 tariff on importing steel, and imported 67tons. Question: what is the gain of US from the importing tariff ?
what is the net loss of the whole world ?
S
D
e
0 67 100
e - (b+d) = 670 – 165 = 505
The net loss of the whole world = b+d+f = 330
Q
2. (10) In free trade , steel price is $1000 per unit, including coke(焦炭) 400 and iron ore(铁矿石)500 .
Before entering WTO, the importing tariffs are 100%, 50% and 50%. After entering WTO, the importing tariffs are reduced to 5% (coke),6% (iron ore )。
Question: After entering WTO, what will be the tariff rate of steel in order to keep ERP constant ?
(入世后,要保持与入世前相同的有效保护率,钢铁的进口税率是多少?)
Before: V’= 1000×(1+100%) – 400×(1+50%) – 500×(1+50%) = 650 V = 1000 – 400 – 500 = 100
REP = (650 – 100 ) ÷ 100 = 5.5 (第一步做对7分) After: suppose the tariff rate of steel is x ,
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