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Complete “Study Questions” 15 and 16 at the end of chapter 4 in the textbook.Complete “Study Question” 18 at the end of chapter 5 in the textbook.You are not required to submit this assignment to Turnitin.15. Assume the nation of Australia is “small” andthus unable to influence world price. Its demandand supply schedules for TV sets are shown inTable 4.12. Using graph paper, plot the demandand supply schedules on the same graph.a. Determine Australia’s market equilibrium forTV sets.(1) What are the equilibrium price andquantity?(2) Calculate the value of Australian consumersurplus and producer surplus.b. Under free-trade conditions, suppose Australiaimports TV sets at a price of $100 each.Determine the free-trade equilibrium, and illustrategraphically.(1) How many TV sets will be produced, consumed,and imported?(2) Calculate the dollar value of Australianconsumer surplus and producer surplus.c. To protect its producers from foreign competition,suppose the Australian government leviesa specific tariff of $100 on imported TV sets.(1) Determine and show graphically the effectsof the tariff on the price of TV sets inAustralia, the quantity of TV sets suppliedby Australian producers, the quantity ofTV sets demanded by Australian consumers,and the volume of trade.(2) Calculate the reduction in Australian consumersurplus due to the tariffinduced increasein the price of TV sets.(3) Calculate the value of the tariff ‘s consumption,protective, redistributive, and revenueeffects.(4) What is the amount of deadweight welfareloss imposed on the Australian economyby the tariff?16. Assume that the United States, as a steel-importingnation, is large enough so that changes in thequantity of its imports influence the world priceof steel. The U.S. supply and demand schedulesfor steel are illustrated in Table 4.13, along withthe overall amount of steel supplied to U.S. consumersby domestic and foreign producers. Usinggraph paper, plot the supply and demandschedules on the same graph.a. With free trade, the equilibrium price of steelis $ ______ per ton. At this price, ______ tonsare purchased by U.S. buyers, _____ tons aresupplied by U.S. producers, and ______ tonsare imported.b. To protect its producers from foreign competition,suppose the U.S. government levies aspecific tariff of $250 per ton on steel imports.(1) Show graphically the effect of the tariff onthe overall supply schedule of steel.(2) With the tariff, the domestic price of steel risesto $_____ per ton. At this price, U.S. buyerspurchase _____ tons, U.S. producers supply_____ tons, and _____ tons are imported.(3) Calculate the reduction in U.S. consumersurplus due to the tariff-induced price ofsteel, as well as the consumption, protective,redistribution, and domestic revenue effects.The deadweight welfare loss of the tariffequals $_____.(4) By reducing the volume of imports withthe tariff, the United States forces the priceof imported steel down to $_____. The U.S.terms of trade thus (improves/worsens),which leads to (an increase/a decrease) inU.S. welfare. Calculate the terms-of-tradeeffect.(5) What impact does the tariff have on theoverall welfare of the United States?18. Figure 5.6 illustrates the practice of internationaldumping by British Toys, Inc. (BTI).Figure 5.6(a) shows the domestic demandand marginal revenue schedules faced by BTIin the United Kingdom (UK), and Figure5.6(b) shows the demand and marginal revenueschedules faced by BTI in Canada. Figure5.6(c) shows the combined demand and marginalrevenue schedules for the two markets,as well as BTI’s average total cost and marginalcost schedules.a. In the absence of international dumping,BTI would charge a uniform price to UKand Canadian customers (ignoring transportationcosts). Determine the firm’sprofitmaximizing output and price, as wellas total profit. How much profit accrues toBTI on its UK sales and on its Canadiansales?b. Suppose now that BTI engages in internationaldumping. Determine the price thatBTI charges its UK buyers and the profits that accrue on UK sales. Also determinethe price that BTI charges its Canadian buyersand the profits that accrue on Canadiansales. Does the practice of internationaldumping yield higher profits than the uniformpricing strategy? If so, by how much?