CENGAGE | MINDTAP Homework (Ch 09) Use the green triangle (triangle symbol) to shade in the area representing consumer surplus, and then use the purple triangle (diamond symbol) to shade in the area representing producer surplus. PRICE (Dollars per ton) 410 Domestic Demandi 396 380 365 350 335 320 305 290 275 260 0 20 40 Zambia will export. 60 Domestic Supply Consumer Surplus Producer Surplus PW 80 100 120 140 160 180 200 QUANTITY (Tons of pears) Consumer Surplus When Zambia adjusts its trade policy to allow free trade of pears, the price of one ton of pears in Zambia becomes $350. At this price, tons of pears will be demanded in Zambia, and tons of pears. Producer Surplus When Zambia allows free trade, the country's producer surplus ? Using the information from the previous tasks, complete the following table to analyze the welfare effect of allowing free trade. With Free Trade (Dollars) Without Free Trade (Dollars) tons will be supplied by domestic suppliers. Therefore, by S Therefore, the net effect of allowing international trade on Zambia's total surplus is a and consumer surplus. of by

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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cengage.com/static/nb/ui/evo/index.html?deploymentid=5982802457599975741528598771&eISBN=9780357133637&id=1725-
=
CENGAGE MINDTAP
Homework (Ch 09)
Use the green triangle (triangle symbol) to shade in the area representing consumer surplus, and then use the purple triangle (diamond symbol) to
shade in the area representing producer surplus.
PRICE (Dollars per ton)
410 Domestic Demand
395
380
365
350
335
320
305
Mind Tap - Cengage Learning X b Success Confirmation of Quest x +
290
275
260
0
20 40
Zambia will export
4
Domestic Supply
Consumer Surplus
Producer Surplus
Pw
60 80 100 120 140 160 180 200
QUANTITY (Tons of pears)
Consumer Surplus
When Zambia adjusts its trade policy to allow free trade of pears, the price of one ton of pears in Zambia becomes $350. At this price,
tons of pears will be demanded in Zambia, and
tons of pears.
Producer Surplus
When Zambia allows free trade, the country's producer surplus
?
Using the information from the previous tasks, complete the following table to analyze the welfare effect of allowing free trade.
With Free Trade.
(Dollars)
Without Free Trade
(Dollars)
tons will be supplied by domestic suppliers. Therefore,
by S
Therefore, the net effect of allowing international trade on Zambia's total surplus is a
and consumer surplus
of
by
Transcribed Image Text:211.W03 x cengage.com/static/nb/ui/evo/index.html?deploymentid=5982802457599975741528598771&eISBN=9780357133637&id=1725- = CENGAGE MINDTAP Homework (Ch 09) Use the green triangle (triangle symbol) to shade in the area representing consumer surplus, and then use the purple triangle (diamond symbol) to shade in the area representing producer surplus. PRICE (Dollars per ton) 410 Domestic Demand 395 380 365 350 335 320 305 Mind Tap - Cengage Learning X b Success Confirmation of Quest x + 290 275 260 0 20 40 Zambia will export 4 Domestic Supply Consumer Surplus Producer Surplus Pw 60 80 100 120 140 160 180 200 QUANTITY (Tons of pears) Consumer Surplus When Zambia adjusts its trade policy to allow free trade of pears, the price of one ton of pears in Zambia becomes $350. At this price, tons of pears will be demanded in Zambia, and tons of pears. Producer Surplus When Zambia allows free trade, the country's producer surplus ? Using the information from the previous tasks, complete the following table to analyze the welfare effect of allowing free trade. With Free Trade. (Dollars) Without Free Trade (Dollars) tons will be supplied by domestic suppliers. Therefore, by S Therefore, the net effect of allowing international trade on Zambia's total surplus is a and consumer surplus of by
11.W03 X
CENGAGE MINDTAP
engage.com/static/nb/ui/evo/index.html?deploymentid=5982802457599975741528598771&elSBN=9780357133637&id=17
Homework (Ch 09)
MindTap - Cengage Learning X
The following problem analyzes the Zambian market for pears.
The graph below shows the domestic supply and demand curves for pears in Zambia. Assume that Zambia's government does not currently permit
international trade in pears.
Domestic Demand
396
380
365
V
350
335
320
305
PRICE (Dollars per ton)
Use the black point (plus symbol) to denote the equilibrium price of one ton of pears and the equilibrium quantity of pears in Zambia without
international trade. Next, use the green triangle (triangle symbol) to shade in the area that represents consumer surplus in equilibrium. Finally, use
the purple triangle (diamond symbol) to shade in the area that represents producer surplus in equilibrium.
410
290
275
260
0 20
40
Success Confirmation of Quest x
60
Domestic Supply
80
QUANTITY (Tons of pears)
100 120 140 160 180 200
+144
Equilibrium without Trade
+
Consumer Surplus
Producer Surplus
Based on the information from the previous graph, absent international trade total surplus is
The following graph shows the same domestic supply and demand curves for pears in Zambia. Now, suppose that the Zambian government changes.
its stance on international trade, deciding to allow free trade in pears. The horizontal black line (Pw) represents the world price of pears at $350 per
ton. Assume that Zambia's entry into the world market for pears has no effect on the world price and there are no transportation or transaction costs
associated with international trade in pears. Also assume that domestic suppliers will satisfy domestic demand as much as possible before any
exporting or importing takes place.
Transcribed Image Text:11.W03 X CENGAGE MINDTAP engage.com/static/nb/ui/evo/index.html?deploymentid=5982802457599975741528598771&elSBN=9780357133637&id=17 Homework (Ch 09) MindTap - Cengage Learning X The following problem analyzes the Zambian market for pears. The graph below shows the domestic supply and demand curves for pears in Zambia. Assume that Zambia's government does not currently permit international trade in pears. Domestic Demand 396 380 365 V 350 335 320 305 PRICE (Dollars per ton) Use the black point (plus symbol) to denote the equilibrium price of one ton of pears and the equilibrium quantity of pears in Zambia without international trade. Next, use the green triangle (triangle symbol) to shade in the area that represents consumer surplus in equilibrium. Finally, use the purple triangle (diamond symbol) to shade in the area that represents producer surplus in equilibrium. 410 290 275 260 0 20 40 Success Confirmation of Quest x 60 Domestic Supply 80 QUANTITY (Tons of pears) 100 120 140 160 180 200 +144 Equilibrium without Trade + Consumer Surplus Producer Surplus Based on the information from the previous graph, absent international trade total surplus is The following graph shows the same domestic supply and demand curves for pears in Zambia. Now, suppose that the Zambian government changes. its stance on international trade, deciding to allow free trade in pears. The horizontal black line (Pw) represents the world price of pears at $350 per ton. Assume that Zambia's entry into the world market for pears has no effect on the world price and there are no transportation or transaction costs associated with international trade in pears. Also assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place.
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