Price ($/ton) US 350 L B. 300 200 H. Dus 100 10 Quantity of Sugar (milliontons) 15 20 Ising the prior graph if the U.S. did not trade what price would the good cost? If the world price was $200 what quantity would the U.S. produce? What quantity would be imported. What is onsumer surplus at the world price? What is producer surplus at the world price? (Using labels lo not use math) Who benefits from the free trade and who gets hurt? í the U.S. government puts a tariff on the good so now the price is $300 who benefits, who is urt? What quantity will U.S. producers now produce? What happens to consumer surplus and roducer surplus at this new price? What does the government gain from the tariff? Vho benefits from free trade overall? Who benefits from trade restrictions? Why is a tariff the nost used trade restriction?
Price ($/ton) US 350 L B. 300 200 H. Dus 100 10 Quantity of Sugar (milliontons) 15 20 Ising the prior graph if the U.S. did not trade what price would the good cost? If the world price was $200 what quantity would the U.S. produce? What quantity would be imported. What is onsumer surplus at the world price? What is producer surplus at the world price? (Using labels lo not use math) Who benefits from the free trade and who gets hurt? í the U.S. government puts a tariff on the good so now the price is $300 who benefits, who is urt? What quantity will U.S. producers now produce? What happens to consumer surplus and roducer surplus at this new price? What does the government gain from the tariff? Vho benefits from free trade overall? Who benefits from trade restrictions? Why is a tariff the nost used trade restriction?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Equilibrium is achieved at the output level where quantity demanded equals quantity supplied.
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