The following are the sales achieved by Jensen Fabrics during the ...

[hbsimmons88]

The following are the sales achieved by Jensen Fabrics during the last 7 years:
 
  2007 116,000
   2008 124,000
   2009 127,000
   2010 146,000
   2011 155,000
   2012 154,000
   2013 162,000
 
  Using the compound growth rate calculation, what would be your estimate for sales in 2014?

Question 2

The domestic demand curve, domestic supply curve, and world supply curves for a good are given in the above figure. All the curves are linear. Initially, the country allows imports. Then imports are banned.
 
  Calculate how consumer and producer surplus change because of the ban. Is the country better off with the ban on imports? Why?

[bbburns21]

Answer to Question 1

171,200 (growth rate is 5.7)

Answer to Question 2

Consumer surplus before the ban equals .5  75  75 = 2812.5. Producer surplus before the ban equals .5  25  25 = 312.5. Total social welfare equals 3125. The consumer surplus after the ban equals .5  50  50 = 1250. Producer surplus equals .5  50  50 = 1250 after the ban. Total social welfare equals 2500. Consumer surplus has decreased by 1562.5 and producer surplus has increased by 937.5 because of the ban. Total social welfare has decreased by 635. The country is worse off because the total social welfare has decreased.