Price($/ton)SusA350B300E200GDusK100101520Quantity of Sugar(milliontons)A) Using the prior graph if the U.S. did not trade what price would the good cost? If the world pricewas $200 what quantity would the U.S. produce? What quantity would be imported. What isconsumer surplus at the world price? What is producer surplus at the world price? (Using labelsdo not use math) Who benefits from the free trade and who gets hurt?B) If the U.S. government puts a tariff on the good so now the price is $300 who benefits, who ishurt? What quantity will U.S. producers now produce? What happens to consumer surplus andproducer surplus at this new price? What does the government gain from the tariff?C) Who benefits from free trade overall? Who benefits from trade restrictions? Why is a tariff themost used trade restriction?

Equilibrium is achieved at the output level where quantity demanded by consumer equals quantity…

Sus A 350 300 D E 200 G Dus 100 K 10 Quantity of Sugar (milliontons) 15 20 ) Using 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 consumer surplus at the world price? What is producer surplus at the world price? (Using labels do not use math) Who benefits from the free trade and who gets hurt? =) If the U.S. government puts a tariff on the good so now the price is $300 who benefits, who is hurt? What quantity will U.S. producers now produce? What happens to consumer surplus and producer surplus at this new price? What does the government gain from the tariff? :) Who benefits from free trade overall? Who benefits from trade restrictions? Why is a tariff the most used trade restriction?

Sus A 350 300 D E 200 G Dus 100 K 10 Quantity of Sugar (milliontons) 15 20 ) Using 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 consumer surplus at the world price? What is producer surplus at the world price? (Using labels do not use math) Who benefits from the free trade and who gets hurt? =) If the U.S. government puts a tariff on the good so now the price is $300 who benefits, who is hurt? What quantity will U.S. producers now produce? What happens to consumer surplus and producer surplus at this new price? What does the government gain from the tariff? :) Who benefits from free trade overall? Who benefits from trade restrictions? Why is a tariff the most used trade restriction?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter23: The International Trade And Capital Flows

Section: Chapter Questions

Problem 16SCQ: Both the United States and global economies are booming. Will U.S. imports and/or exports increase?

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Both the United States and global economies are booming. Will U.S. imports and/or exports increase?
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